Microsoft set to extend rally
MSFT•Microsoft shares have risen more than 50% from their June lows and broke out of a consolidation range this week. Technical analysis points to a possible $700 to $750 target if shares clear the $555.45 record high; a fall below $465 to $480 would signal the rally is over for now.
1. Breakout and momentum
Microsoft shares have climbed since the company released upbeat forecasts in July, and this week they broke above a narrow trading range that began in early August. Its 20-week Bollinger Bands are widening and its MACD is pointing higher, which the analysis says suggests momentum may continue.
2. Price levels to watch
Microsoft closed Wednesday at $529.76. Projecting the size of the recent rally before consolidation suggests a possible target of around $700 to $750, but shares would first need to break above their $555.45 all-time high. A fall below the $465 to $480 area would signal the rally is over for now.
3. Market conditions
The stock market has been volatile recently due to high oil prices and rising bond yields.
