Microsoft – Double Top Potential

I may be a bit early here, but with the US share markets looking a little shaky over the past week, Microsoft looks as though it might be a candidate for a double top set up.

Daily Chart

 

MSFT CFD - Source: CMC Tracker

MSFT CFD – Source: CMC Tracker

 

If price drops away from current levels, or not far above, MSFT will form a potential double top.

One approach to entry strategy would be to sell on a break below the dashed red support line. This would not only confirm the double top formation but also overlap through the previous resistance in a further sign of weakness.

If all this happens a correction of the last major rally looks a possibility and profit strategies might be based around the potential to return to the 50% retracement level.

About Ric Spooner

Over 30 years market experience - professional trader, broker, director
This entry was posted in Market, Shares, Stocks, Trading and tagged , , , , . Bookmark the permalink.

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