Seeking Alpha

Alpha 7 Trading's  Instablog

Alpha 7 Trading
Send Message
The Alpha 7 Proprietary Trading Academy moves theory to actual practice by giving students and experienced traders the ability to hone their trading and risk-management skills through one of the most intensive and well-renowned educational programs available for mastering the art of intraday... More
My company:
Alpha 7 Proprietary Trading Academy
My blog:
Alpha 7 Proprietary Trading Academy
  • Microsoft Poised To Test Higher Prices 0 comments
    Oct 28, 2013 10:34 AM | about stocks: MSFT

    Microsoft beat on the top and bottom line last week, and although price action was strong, investors were unwilling to bid up prices above weekly resistance levels, which will likely be watch carefully this week by many market technicians.

    The company reported robust earnings last week and was able to generate $18.5 billion in revenues and $5.2 billion in net income. The numbers the company produced not only beat on the top and bottom line (analyst estimates of $17.8 billion for revenues and $4.5 billion in net income), but they also produce strong year over year comparisons, revenue is up 16% and its net income is up 17%.

    Microsoft is anything but a momentum stock, and has long been viewed as dead cash. The stock has remained relatively depressed over the past 10-years, trading in a range between $13 and $36 despite being a cash cow and generating solid dividend. The recent price action has pushed the stock price to resistance levels and a close above $36.20 would lead to additional upside momentum.

    (click to enlarge)

    The technical momentum for the stock can be viewed as solid as the MACD (moving average convergence divergence) on a weekly basis has generated a buy signal. This occurs when the spread (the 12-week moving average minus the 26-week moving average) crosses above the 9-week moving average of the spread. The weekly index has moved from negative to positive territory confirming the buy signal. The proprietary trading trajectory of the MACD is positive which should lead to positive price action. The RSI (relative strength index) which is an oscillator that measures overbought and oversold levels is printing near 61 on a weekly basis which is in the upper end of the neutral range, but well below the overbought trigger level of 70.

Back To Alpha 7 Trading's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.