MSFT dominated by bulls lifting the market higher throughout the day
Microsoft Corporation (MSFT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MSFT ended the week 0.79% higher at 185.35 after gaining $1.64 (0.89%) today on low volume, outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MSFT as at Feb 14, 2020):
Friday's trading range has been $2.76 (1.51%), that's slightly below the last trading month's daily average range of $3.46. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for MSFT. Prices continued to consolidate within a tight trading range between 181.85 and 186.23 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, MSFT actually lost -2.26% on the following trading day.
Prices are trading close to the key technical resistance level at 186.23 (R1). After having been unable to move lower than 182.87 in the prior session, the stock found buyers again around the same price level today at 182.65.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 186.23 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Microsoft. Out of 521 times, MSFT closed higher 53.36% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.23% with an average market move of 0.78%.