Hi Traders,

We hope you’re enjoying the new Pit Report. Yesterday, Mark gave you his outlook for Microsoft (Ticker: MSFT). Today, it’s my turn to follow up with a chart review.

MSFT has been in a downtrend since its high of $349.67 on Nov. 22, 2021, and traded a low of $213.43 on Nov. 4, 2022.

There is some pretty good support at $219, marking two of the three recent lows.

MSFT closed yesterday within three cents of the 50-day moving average which will provide some resistance.

I have a resistance line at this level, as well as that large node on the volume profile. See bars on the left:

The top of that large volume node will provide resistance, too, at $247.50.

If MSFT can close above $241, I think it can rally to $255.50, which has been previous resistance. 

From there, the 200-day moving average comes in at $257.40

My long term resistance that goes back to Nov. 2021 comes in at $266.65.

Here is my monthly pitchfork chart:

Right now, MSFT looks to me like it is ready for a minor pullback to gear up for its next leg up.

Be sure to add these support and resistance levels to your chart!

And email me with any questions!

See You Next Tuesday,

Licia Leslie