Microsoft stock (NASDAQ:MSFT) has been making
attempts to recover the loss it sustained this year.
Given the Bullish Confirmation Pattern in the chart,
the price is supposed to go further higher. The ADX period 14 is below the level
20 (showing a trendless market). However, the DM+ is above the DM-. The MACD (default
parameters) has both its signal lines and the histogram above the zero line.
When the momentum returns to the market, the price development would favor the
bull.
Conclusion:
Irrespective of the pullbacks that have been seen so far in this year,
Microsoft stock will make further higher highs and higher lows, testing the
distribution territory at 50.00, and possibly going higher than that. There are
certainly many trading instruments that continue to respect Bullish
Confirmation Patterns in their charts, proffering good opportunities to grow
capital. One needs to bear it in mind that a bear market is a bear market and
the bull will do himself a favor to ignore such market. A bull market is a bull
market and the bear will do himself a favor to stay away from such market.
Instead of going against the dominant bias in a market, one would do well to
look for other trading instruments like Microsoft that offer good trading
chances.
This forecast is ended with the quote below:
“Usually,
you are afraid of a loss prior to entering a trade. But you have to recognise
that long-term success and profitability in trading is a long-term process and
does not depend on one single trade.” – Jens
Klatt
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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