Microsoft shares stabilize after a test to the downside
Shares of one of the leading tech giants in the U.S. have tested the charts to the downside, however no conclusive moves have happened and we are on our way to close the day roughly unchanged. The company behind Windows has unveiled last week its newest operating system - Windows 10.
We are looking forward to the next move in prices but from what we have seen on the chart, we can say that the downside seems a but more likely from here. We need to see an hourly close above $46.15 to justify buying daily calls on this pair. On the other hand there is scope to the downside still.
That will open up if we see the pair trade lower and get an hourly close below $45.70. Since we have seen no particular action from the bulls nor the bears today, we are very likely to see something develop tomorrow. The sentiment on the stock has been overwhelmingly positive during the past couple of months.
After the former CEO of the company Steve Ballmer announced that he will be leaving his post after so many years and will get succeeded by Satya Nadella, the firm's shares skyrocketed towards recent highs just above $47.50.
The announcement last week that the company will be introducing Windows 10, therefor skipping the Windows 9 brand which everyone expected has been received by the market positively. The company has claimed that all devices - from phones to server computers and desktops will be able to run the same operating system.
The market liked the announcement but the stock has rallied for too long at this point in time. A correction is ongoing and its only dependent on incoming data how long and how deep is it going to be. For now the best course of action is to look at the mentioned key levels and only trade after a break of those.
Expiry time: 20:00 GMT