MSFT broke down a little bit from the two year uptrend line in March as seen in this weekly chart. It’s slowly forming a cup. Whether or not it can break out from the intermediate term downtrend remains to be seen in the comming weeks. MSFT has been lagging from its peers. However, with its over $50B in cash and gradually settled legal cases, plus M&A rumors such as SAP, we may see some big movement sson.
LOW broke out from the downtrend line at 54 last week, but it lost its momentum right at the resistence at 56, which was the previous attempt to break out. I was biased to short at 54 in the last comment on LOW. It would be stopped out at 54.5. It looks like that it is going to retest 54 level before it can go higher. Now, 54 has become the support. The major support is still at 52. I opened a position on LOW Jul 55 Put bought at 1.60. I plan to close it once it hits 54.
LOW is once again at its downtrend line. My bias is on the short side and target is 52. I would bail out at 54.5 if the volume is higher than the average.
LOW is once again at its downtrend line. My bias is on the short side and target is 52. I would bail out at 54.5 if the volume is higher than the average.
QQQ closed at 35.96 today. The resistence will be the intermediate downtrend line below 37. If 37 is taken out, it will signal a breakout from the downtrend started in Jan. 2004. We will take some profit at 37 and use 36 as the stop for remaining position.