MSFT has been struggling since the spring - falling approx
10%. But the recent release of its tablet, the Surface, has put some juice back
in the stock. The Surface has put some pop back into a dead stock with a rally
of $2 last week, and appropriately right off the nearly 4 year bullish
trendline from its March 2009 lows.
Quick and dirty opinion - sell the news.
The tech sector has been struggling and MSFT stock price is
no exception. This news related pop into an area of resistance near $30 is an
excellent opportunity for longs trapped at poor prices over $30 to sell for a
small loss, and for shorts looking for downside exposure to get a good
risk/reward entry. Watch for the stock price to revert back towards its long
term trendline near $28 in the near term. Then watch for an eventual break of
said trendline for support near the $25 zone.
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