Microsoft, week 4 of an open buy signal
Microsoft: the first target is already hit, the stop moves to breakeven
Our view last week
Microsoft closes the week down 2.5%, a second straight pullback after last week's warning: buying volume contracting, sellers slightly ahead on the latest weekly bar. The underlying picture hasn't cracked, though — ADX rising for three weeks, MACD above its signal line for six. In this Microsoft stock technical analysis, the buy signal, which fired three weeks ago, remains in a consolidation phase, while the tech sector it leans on, XLK, is having a weak week.
This week's summary
Microsoft confirms the buy signal that fired four weeks ago and has already hit our model's first target, with the trade up 10.5%. The stop moves to breakeven on entry: from here on, the trade's risk is zeroed out. The weekly picture stays solid — moving averages aligned, ADX rising, MACD above its signal line for seven weeks — while the stock trades right up against its all-time highs, an area already tested more than once. Our model prefers to wait for a pullback.
IQS Phase
78
in tension
Signal Strength
66
medium
Sizing
STANDARD
Ranking
#39 / 175
US stocks in progress
Trade P&L %
+10.50%
from signal to date, no stop loss
Rank position
ranks 39th among the 175 Longs already running for US stocks in our ranking, with a signal strength of 66 out of 100.
Sector context
SectorGrowth Tech
Benchmark ETFXLK
Sector regimeweak phase
Performanceweekly +1.30% · monthly +11.48%
MSFT belongs to the growth tech sector (reference ETF XLK). The sector is classified weak phase according to our weekly reading.
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