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In our last analysis on MicroSoft Corporation stock, we saw the price action was supported by 100 MA. But we reminded that only buy unless the price action above 20 MA.
Let use different method to test the trading strategy.
MicroSoft Corporation MSFT – Catching the Falling Knife
We analyse the chart without any indicators other than support and resistance. We see the hamornic number; the swing or range of the move.
Approach 1
If you follow our mantra, you should have not buy since the last analysis. So, is it low enough to buy; catch the falling knife. Our rule (mantra) is very simple, buy when price action near support and have completed bullish chart pattern. To be on the safe side, buy when the price action breakout the trendline.
July 6, 2015 MicroSoft Corporation
MicroSoft Corporation MSFT – and Bollinger Band
Approach 2
Price Action is continue on the low band of the Bollinger band, it is still too young to trade reversal. Only until price action close inside low band.
In addition, the 50 MA is pointing down, it is bearish bias. Follow our mantra, buy when near support and completed bullish chart pattern.
July 6, 2015 MicroSoft Corp
MicroSoft Corporation MSFT – and Moving Average
Moving Average is a great visual tool to sport trend, buy or sell trading decision. Follow our mantra (rule). see above for details.
MicroSoft Corporation July 6, 2015
MicroSoft Corporation MSFT and River
River will be a superior tool compare to moving average, the price will trap in River, supported or resisted by River. See chart for details.
July 6, 2015 MicroSoft Corporation
Thanks for visiting the website, have fun!
Moses
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