- Microsoft corp is trading near an important weekly trend line.
- Violation of the trend line can give good correction for the stock.
- The second chart shows the Moving averages for the stocks. Stock is trading below its 200, 50 and 20 DMA.
- So a reversal in Weekly chart can only happen when the stock closes above 20 and 50 DMA in daily chart.
- 23.4 is very important support for the stock. Break of this level on closing basis will favour the bears.
Last Sunday I Opined about a possible Frog Boil based on a proprietary indicator, the VIX/VXN Volatility Ratio.
ReplyDeleteHere is that Opine. Although prickly, not to be confused with porcupine.
http://oahutrading.blogspot.com/2010/09/holy-grail-part-2-vixvxn-volatility.html
And a new indicator. The PM Summation. This is a sub-component of my "Fear Factor" indicator.
It draws nice trendlines. When money runs out of bonds, where will it go to?
http://oahutrading.blogspot.com/2010/09/frog-boil-tasty-if-you-catch-it-at.html
Cash?
Real Estate (yeah right)
precious metals
US stocks
China stocks
Art work
More Harley's to sit in the garage
Junk bonds
Well look above, first the 20 point drop to get the frogs to jumps into the pot, then a spastic increase in "heat" with occasional relief in temperature to convince the frogs to stay in the pot while tiring them out in duration. Note the orange line the 38 Fibo as defined in the blue notes, which seems to be Gandolf saying "you shall not pass". Let the battle commence.
And here is the 9-12-2010 Chart showing the "Frog Boil" in action
http://oahutrading.blogspot.com/2010/09/frog-boil-tasty-if-you-catch-it-at.html