MSFT unable to break through key resistance level
Microsoft Corporation (MSFT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MSFT ended Thursday at 156.11 gaining $9.19 (6.26%), outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 154.33, the stock confirmed its breakout through the prior session high after trading up to $2.33 above it intraday.
Daily Candlestick Chart (MSFT as at Mar 26, 2020):
Thursday's trading range has been $8.29 (5.59%), that's below the last trading month's daily average range of $10.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MSFT.
One bullish candlestick pattern matches today's price action, the White Candle.
Microsoft managed to close back above the 200-day moving average at 148.39. Unable to break through the key technical resistance level at 156.45 (R1), the market closed below it after spiking up to 156.66 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Monday, MSFT actually gained 9.09% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Microsoft. Out of 33 times, MSFT closed higher 54.55% 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 69.70% with an average market move of 1.39%.