After Impressive Rally MSFT Hanging Out at the Highs
Thu, Jul 20, 12:41 PM ET, by Corey Rosenbloom
You may not see Microsft (MSFT) as a great candidate for day trading, but swing traders certainly have been using it with good results.
Let’s chart the recent impressive rally into the current reversal candle “hanging out” at the highs:
Microsoft (MSFT) shares rallied 11 straight days higher including today from the $68.00 lower support pivot through the prior high toward the current $74.00 per share level.
That’s impressive by any standards.
Yet here we are, once again with (so far) a reversal candle above the upper Bollinger Band.
It’s a similar situation to what we saw at the beginning of June ahead of a steep yet normal/expected retracement lower after another impressive straight-up rally.
If you’re aggressive, you may want to play defensively here to try to trade (fade) the pullback from the high.
Otherwise, 11 straight up days can become 12… then 13… and yes it can happen.
The odds are strongly against it – making a valid “fade trade” – but it could happen.
Either way, the next swing should be interesting – frame it in terms of the “departure” from $74.00 per share.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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