Technical analysis of Microsoft stock Corporation on November 9, 2017

4-hour timeframe

The 15-minute timeframe

Technical picture:

Shares of Microsoft on Wednesday, November 8, has been further adjusted, but the correction still more lateral than downward. The goal for the corrective motion is the critical line Kijun-sen, however the price has failed to go even below the pivot level 83,84. A new bullish model «Absorption» signaled a possible resumption of the uptrend, and the MACD indicator has long been directed downwards, and continues so to discharge. Stochastic continues to be in the overbought zone, indicating the absence of a downward correction. The Bollinger bands continue to witness uptrend on the instrument. A reversal of the MACD indicator up can signal the completion of a downward correction. On a 15 minute timeframe shows that price still is above the line Tenkan-sen, so the upward movement is relevant at the moment with the level of resistance 84,80. If the price fixes below Tenkan-sen, the correction movement will continue with the aim Kidjun-sen.

Trading recommendations for a 4-hour timeframe:

Stock price MSFT continues lateral correction. On the current chart is recommended to consider long positions with the targets 84,80 and 85,50. Stop loss should be set below the critical line (82,09). To open buy orders is recommended when the formation of a bullish candlestick (confirmation), when you bounce rates from the critical line or in the case of the MACD reverses up (may be late with the response). Shorts at the moment not relevant.

Trading recommendations for the 15 minute timeframe:

For younger graph is recommended to consider orders for purchase with the purposes and 84,80 85,50 when fixing the price above 84,12 (Tenkan-sen) and the level of the S/L below 84,12 and at an upward MACD. You should also consider the lateral correction on the 4 hour timeframe.

In addition to the technical picture should also consider the fundamental data and the time of their release.

It is not recommended to transfer open positions to the next trading session due to probability of formation of a gap or be sure to put the Stop Loss order.

Signals received from candlestick patterns are the strongest when overlapping with other signals (bounce, consolidation, MACD) or require confirmation.

Explanation of illustration (chart 1):

The Ichimoku Indicator:

Tenkan-sen – red line.

Kijun-sen – blue line.

Senkou span a – light brown dotted line.

Senkou span B – light purple dotted line.

Chinkou span – green line.

Indicator Bollinger bands – 3 yellow lines.

The MACD red line and the histogram with white bars in the indicators ‘ window.

Red horizontal dashed lines – support and resistance.

The Stochastic indicator blue and red dotted lines in the indicator window.

Various candlestick combination.

Explanations to the illustration (figure 2):

Trading session – vertical dotted yellow lines.

Red horizontal dashed lines – support and resistance.

Multicolored horizontal lines – lines Ichimoku senior timeframe.

Blue cross fractals.

The MACD red line and the histogram with white bars in the indicators ‘ window.The material has been provided by InstaForex company —

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