In our most recent report on Microsoft Corp. (on March 21, 2015 – $42.88 U.S.) we suggested the need for a period of consolidation before the company could resume the long-term up-trend.
Following our report, Microsoft settled in a horizontal trading range mostly between $40 and $49 (dashed lines). The recent rise above this range confirms renewed investor interest and the start of a new up-leg (A).
Microsoft is currently in the midst of a minor retracement toward $50 for a better entry level. Only a decline below $47-$48 would be negative. Point & Figure measurements provide targets of $59 and $64. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.