MSFT Microsoft Daily Chart Death Cross Lower Band Violation

Mr Softy prints a death cross (black circle) a few days ago so as often happens, price tends to recover higher once the death cross occurs but the pattern does point to weakness a couple months out. The bounce on Friday is due to the tiny two-day positive divergence with RSI and stochastics but the other indicators remain weak and bleak wanting lower prices. The thin green lines for the indicators show a positive slope over the last six weeks but this is not positive divergence since price did not print a lower low. Microsoft bulls would have been better off if price would have falllen to 37-40 since the indicators would be possie d and create a strong launch higher. The move higher now may not have much gusto.

The gap at 41.5-42.0 will need filled as well as the remaining gap at 44-45. The lower standard deviation band was violated so a move back to the middle band at 43.16, at a minimum, is on the table. Price is using the 40.0-41.5 level as support since this represents a strong congestion zone from last summer. MSFT has a sideways vibe in play through 38-45 for the weeks and months ahead. Microsoft should remain in a sideways malaise, perhaps choppy sideways, for a few weeks. There are far better places to invest money than Microsoft. Another concern is recent information provided by INTC about lackluster PC sales. Businesses are not hiring workers or expanding so the demand for computers is not occurring and if you do not need computers you do not need software. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.