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Has Microsoft Stock Found Its Top?

When someone mentions Microsoft (MSFT) often the first thing that comes to mind is undoubtedly Bill Gates, and for good reason.  Technology pioneers like Gates and Steve Jobs have had such a significant impact on technology and ultimately society that one can only wonder what if they didn't do what they did...

But, we're not here to talk about that, rather we would like to ponder whether or not after nearly 20 years has Microsoft stock price found its new top?  We take great pride in technical analysis and figuring out the "math" behind a chart but Microsoft presented a bit of a challenge but we think we may have solved the puzzle...

During the 1990s it seemed like Microsoft stock was doubling in price on an annual basis until its peak of around $60 when everyone was partying like it was 1999, well because it was 1999.

But then the stock seemingly hibernated for over a decade with sideways and downward movement falling all the way below $15 in 2009.  What was wrong with Microsoft asked everyone and their brother.

That's when the company's comeback of all comebacks began and the stock price has increased 10 times since then but we pose the question from a technical perspective has price found its new top?

We think the answer for at least now is yes, well maybe yes that is.  We qualify that with "maybe" because we all know that price can do whatever the heck it wants.  And removing any fundamental biases like the Balmer era and how current CEO Satya Nadella has transformed Microsoft's business into what it is today we're watching price action at these fresh new all time highs.

So whether you've loved to hate Microsoft over the years or hated to love them, or simply haven't cared, now is a time to closely watch their stock if you happen to own it or are a trader looking to benefit from good ole fashioned technical analysis.

We make the argument that price has reached an area where it could "pause" its steep ascent or possibly pull back from its meteoric rise into history. 

So with all that said, would you trade Microsoft and if so how? 

We'd like to know!

Enjoy your Free MSFT TOS chart link - http://tos.mx/tG6Gqo8

Microsoft stock chart

 

1 comment

  • Obvious bias, should be to short right away based off all technical’s but like Tom said price can do anything it wants so, I want to see if it can go back up and double top then how it reacts from there to start putting on positions.

    Blake Suitter

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