Microsoft Moves Toward All-Time Highs Ahead Of Federal Reserve Meeting Minutes: A Technical Analysis

Zinger Key Points
  • Microsoft is trading in an uptrend, making a series of higher highs and higher lows.
  • MSFU is a leveraged ETF, offering traders 150% the performance of Microsoft's common shares on an upside move.

Microsoft Corporation MSFT was trading slightly higher Wednesday, appearing to work its way back toward the March 14 all-time high of $427.82.

Recently, the technology giant was the top pick amongst investors who answered which stock they would choose to hold over the next 30 years on the r/investing subreddit. Redditors noted Microsoft’s cross-industry dominance, the company's ability to innovate and stability and strong potential for growth as a few of the reasons they’d choose the stock as a long-term hold.

Whether or not Microsoft flies into blue skies over the next few days is likely dependent on how the market reacts after the Federal Reserve releases its March policy statement at 2 p.m. Wednesday.

Traders who are bullish on Microsoft could choose to play Direxion Daily MSFT Bull 1.5X Shares MSFU. MSFU seeks to return daily investment results, before fees and expenses, of 150% of the performance of the common shares of Microsoft.

Bearish traders can choose to play a move to the downside through Direxion Daily MSFT Bear 1X Shares MSFD.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Microsoft Chart: Microsoft began trading in its most recent uptrend on March 6, confirmed on March 14, when the stock formed a higher high. Previous to that, Microsoft had been trading in a horizontal pattern but indicated a new uptrend may form within that formation on March 11, when the stock printed a higher low at the $401.26 level.

  • On Wednesday, Microsoft was working to print a doji candlestick, which could indicate the local top has occurred. If that happens and the stock suffers a bearish reaction to the Fed’s news, the uptrend will be negated and a new downtrend could form.
  • Bullish traders want to see Microsoft receive a bullish reaction to Wednesday’s event and for the stock to rise up above the March 14 high-of-day. If that occurs, the uptrend will remain intact and Microsoft will have no further resistance above in terms of price history.
  • Microsoft has resistance above at $427.82 and at the psychologically important $430 mark and support below at $412.65 and at $398.01.
Market News and Data brought to you by Benzinga APIs
Posted In: Long IdeasShort IdeasSpecialty ETFsTechnicalsTrading IdeasETFsdirexionPartner Content
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!