Microsoft Corporation (MSFT) Shows Strongly Bullish Technicals Within Longstanding Uptrend
Microsoft (MSFT) stock is poised for significantly further upside from both a fundamental and technical perspective. The stock has been entrenched in a strong bullish trend for many years, and 2018 has been no exception. As of Wednesday, MSFT has gained over 30% year to date (and over 40% from a year ago), and momentum does not appear to be waning. Microsoft reported its most recent earnings on October 24th after the market close, and the company easily beat on both the top and bottom lines, prompting a sharp gap to the upside the next morning. Analysts are highly optimistic about the company and the stock.
From a technical perspective, most signs are pointing bullish. In late October, along with the rest of the market, the price of MSFT dipped. However, the stock formed a bullish hammer candle (or pin bar) on that dip, right at its 200-day moving average. This created a potentially bullish scenario that played out almost immediately as a sharp rebound and recovery.
The Technicals Rating
The Technicals gives MSFT a bullish rating of 9 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for MSFT, as well as other relevant information that paints a strongly bullish picture of the stock:
- Price Position vs 200-Day SMA: +10.75% (above) – BULLISH
- Position vs 50-Day SMA: +1.45% (above) – BULLISH
- Position vs 20-Day SMA: +4.39% (above) – BULLISH
- 100-Day Trend Slope (Linear Regression): BULLISH
- 200-Day Trend Slope (Linear Regression): BULLISH
- Stochastics (14,3,3) Level: Rising To Overbought – BEARISH
- RSI (14) Level: In the Middle – NEUTRAL
- Position in Bollinger Bands: At Upper Band – BEARISH
- Sector (ETF: XLK) Long-Term 200-Day Trend: BULLISH
- Sector (ETF: XLK) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BULLISH
- Short Interest Ratio: 0.61% – BULLISH
- Analysts’ Mean Target Price: $125.15 (above current price) – BULLISH
- Last Earnings Move: Sharp Gap Up – BULLISH
Overall The Technicals Rating for MSFT: TTTTTTTTTT (9 out of 10) – STRONGLY BULLISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don