Microsoft has had a strong move off March’s 356 low, but the monthly chart makes it look feeble. True, the stock’s steep descent tripped a ‘mechanical’ buy at the green line (x=408.52). However, I don’t expect the bounce to get much further than the midpoint Hidden Pivot resistance (p=472.25), if that far. I am no fan of head-and-shoulders patterns because they are everywhere one cares to find them, but it is not difficult to imagine a picture-perfect right shoulder forming. Regardless, the pattern as is should serve our need to keep close track of this crucial stock-market bellwether.
MSFT – Microsoft (Last:414.44)