Microsoft Technical Analysis (NASDAQ:MSFT)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. When a chart pattern that can predict future Microsoft stock price movements is formed, the MSFT stock chart can become a key tool for a technical analyst.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Microsoft. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Microsoft stock analysis using these technical indicators helps identify trading opportunities.
Microsoft Moving Average:
Moving averages show the average price of MSFT stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer MSFT stock price movement for the moving average to change course.
Microsoft Bollinger Bands:
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the MSFT stock. Microsoft bollinger bands show that the stock price is $64.98, upper band is 25.45, lower band is 24.86, and the average is 26.05.
Microsoft Moving Average Convergence Divergence or MACD:
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Microsoft MACD line is below the signal line.
Microsoft Relative Strength Index:
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. If the RSI of MSFT stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .