Okay I've been studying TA recently, particularly stochastics as an overbought/oversold indicator. Is it fair to say that by looking at this chart that MSFT looks like a buy at around this price or am I mistaken. I just need some reassurance to make sure I'm on the right track to interpreting these charts. Thanks.
Drew, If MSFT can not stay above 30.40 then it is coming down to 27.70 and then 25.30. That stochastic will get you into trouble unless you are trading nickles and dimes.
I figured this would be a shorter term strategy. What makes you bearish on it if it can't hold it's recent highs? Why are these particular levels significant? Thanks.
Drew, i am not bearish on MSFT . I am just looking at the movement and retracement patterns. You may be able to buy at a better (lower price). Watch the 29.55 to 29.65 area tomorrow. If it can not stay above that then it could come down about .70
I would watch to see if it bounced off the major trendline tomorrow to confirm before putting in a trade. Not a bad trade if you think about it, I'm bullish on tech still.
28.5 to 29.00 looks like support. Why would you buy with those huge red volume bars?. MFI also make a good overbought/ oversold indicator and it's not as confusing as Stochastics...I think. Also ROC (momentum) shows no signs of turning up, so wait a lil while longer I'd say . http://stockcharts.com/h-sc/ui?s=MSFT&p=D&yr=0&mn=4&dy=0&id=p53035442678 cm69
Drew, did you ever put on that MSFT trade?? If not wait. It will probably hit those other areas I mentioned....27.70 then 25.30
Drew, I would wait until %K crosses over %D of Stocahstic before I made a move to go long. Also, I think that when %K arc's above 20 and %D touches 20 as well as a simultaneous cross of macd provides a good probability of $$ from going long.
first I wouldnt touch it. second i dont know if you are using the Full Sto in the pic (first post) but that is equal to a Slow Sto. and is default maybe look into adjusting it