Microsoft (MSFT) Chart – 6 Month Chart

I charted Microsoft (MSFT) on April 16, 2009 at 2:26 pm while MSFT was trading at $19.44.

• MSFT is on the top side of its trading channel for the past five months near its trend line of slightly lower highs
• MSFT is on the lower side of its trading channel for the past month and a half of higher lows
• MSFT has broken below its 10 day moving average for the past three days, but only closed below it yesterday and is trading above it today
• MSFT held support on its 20 day moving average yesterday
• The 14 day Williams %R indicator for MSFT broke below overbought yesterday losing momentum, but recovered today and the 28 day indicator c0ntinues to maintain momentum

Opinion – MSFT needs to get above its five month trend line, currently around 20 before I get bullish.  Support could come from its 10 day moving average now that it recovered, but that’s in jeopardy.  The next line of support is the 20 day moving average again.  The low from yesterday could be the new point to watch from the upwardly moving trend line of higher lows.  If MSFT gets back down to the $16.00 range it’ll be time to buy with little risk, until then I’m staying nimble on it.