Microsoft Stock Fails to Hold Monthly Value
Microsoft Corporation (MSFT) beat earnings per share (EPS) estimates when the company reported results after the July 22 close. The stock was above its monthly value level at.205.19 when the results were released. Software giant and Industrial Average component Dow Jones opened on July 23 above the monthly pivot and then broke below this key level. However, the stock remained above its quarterly and half-year pivots at $ 196.79 and $ 196.71.
Microsoft shares closed Monday, July 27, at lunes 203.85, up 29.3% to date and in bull market territory at 53.8% above their March 23 low of marzo 132.52. It is also 5.8% below its all-time high of julio 216.38 set on July 9. Fundamentally, Microsoft shares are overvalued with a P / E ratio of 35.01 and a dividend yield of 1.01%, according to Macrotrends.
This technology giant offers a wide range of products and services: operating systems for PCs, servers, phones, cloud software, video games and online advertising. Microsoft also owns LinkedIn, which is a big deal because its purchase of the social media platform began an EPS winning streak of 17 consecutive quarters.
Microsoft shares have been above a golden cross since March 15, 2019, when the 50-day simple Moving Average rose above the 200-day simple Moving Average, indicating that higher prices were ahead. This tracked the action back to its Feb. Data coding method: from this high, the stock fell 30.5% to a low of marzo 132.52 set on March 23.
After bottoming out at this low, the stock rebounded 63% to its all-time intraday high of julio 216.38 on July 9. At the low, Microsoft shares held their annual value level at marzo 136.42 between March 16 and March 23.
The stock moved above its 200-day simple Moving Average on March 25 and above its 50-day simple Moving Average on April 13. This tracked the stock down to its all-time intraday high of julio 216.38 set on July 9.
From the high, the stock has held above its quarterly and half-year pivots at $ 196.79 and $ 196.71. Microsoft is currently trading below its monthly pivot at $ 205.19 and its weekly risk level at.214.93.
The weekly chart for Microsoft is neutral, with the stock above its five-week modified moving average of.198.57. The stock is well above its 200-week simple moving average, or reversal to the average, at $ 110.50. The 12 x 3 x 3 weekly slow stochastic reading is projected to end the week falling below the overbought threshold of 80.00 with a reading at 79.26.
Trading Strategy: Buy Microsoft shares in weakness at their quarterly and half-year pivots at $ 196.79 and $ 196.71. Reduce holdings in fortaleza to its weekly risk level at $ 214.93. The monthly pivot at $ 205.19 should be a magnet.
How to use 12 x 3 x 3 weekly slow stochastic readings: my choice to use 12 x 3 x 3 weekly slow stochastic readings was based on backtesting many stock price boost reading methods with the aim of finding the combination that resulted in the least amount of false signals. I did this after the stock market crash of 1987, so I’ve been happy with the results for over 30 years.
The stochastic reading covers the last 12 weeks of highs, lows and closures for the stock. There is a gross calculation of the differences between the high maximum and the low minimum against closures. These levels are modified to a fast read and a slow read, and I found that slow read worked better.
The stochastic reading ranges between 00.00 and 100.00, with readings above 80.00 considered overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an “inflatable parabolic bubble” formation, which is normally followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered “too cheap to ignore,” which is usually followed by gains of 10% to 20% over the next three to five months.