Microsoft Corp. (MSFT) is higher in pre-market trading here on Thursday as it reports it will be incorporating generative AI into its platform. Also, the company warning that Chinese state-sponsored hackers attacked "critical" infrastructure organizations in Guam and the United States, as highlighted today by Stephen Guilfoyle in his Market Recon column, is helping to put a bid under Microsoft's shares and those of firms involved in cybersecurity. The race is on.
Let's take a look at the charts and indicators of MSFT ahead of the opening.
In this daily bar chart of MSFT, below, I can see a low in October and a retest in early January before price turned northward. MSFT now trades above the rising 50-day moving average line and the rising 200-day line. The trading volume has been more active since December, telling me that traders and investors have gained more interest in MSFT. The On-Balance-Volume (OBV) line shows some up-and-down improvement from early January. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has corrected modestly.
In this weekly Japanese candlestick chart of MSFT, below, I see a bullish picture. I do not see a top reversal or upper shadows to worry about. MSFT trades above the rising 40-week moving average line. The weekly OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of MSFT, below, I can see an upside price target in the $412 area.
In this second Point and Figure chart of MSFT, below, I see the software is projecting a target of only $383. That could change.
Bottom line strategy: I offered a strategy for MSFT on April 24 and prices have moved above $296 to refresh the bull case. Longs should raise stops to $301. The $383 area is my price target now.
Let's look at what many observers failed to notice about oil, and what could happen when the oil exporting nations -- including Russia -- meet on June 4.
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