MSFT: Top Signal Below Resistance?Looking at MSFT's daily chart, the price action shows a strong upward movement recently, breaking above the key resistance level at $426.79 and reaching the next resistance at $441.48. The 21-day EMA is currently trending upward, supporting the bullish momentum. However, the price is now pulling back slightly from the $441.48 resistance level, which might indicate short-term profit-taking or consolidation after the strong rally. A sustained breakout above $441.48 would indicate further bullish potential, but the price needs to stay above this key point to maintain this momentum. If the price materializes a top signal, the next support would likely come around $426.79, the previous resistance level, now support - Princciple of Polarity.
On the hourly chart, MSFT is moving within a well-defined ascending channel, with the price bouncing between the channel's support and resistance lines. The recent pullback from $441.48 suggests a minor correction within the channel, but as long as the price remains above the channel's lower boundary and the 21-hour EMA, the uptrend remains intact.
Overall, MSFT is in a bullish structure, but the immediate test will be how it reacts to the pullback from the $441.48 resistance. A breakout above this level would confirm continued strength, while a failure to hold the short-term support levels could signal further consolidation or correction.
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“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
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Nathan.
