Trading Microsoft

Published on Thursday, 02 September 2010 19:24 Written by Christopher Lynn

New York, September 2nd (TradersHuddle.com) - Shares of Microsoft Corporation (NASDAQ:MSFT) closed the trading session at $23.94 near its 50 day moving average currently set at $24.76. Microsoft's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Microsoft Corporation (NASDAQ:MSFT) develops, manufactures, licenses, and sells software products. The Company offers operating system software, server application software, business and consumer applications software, and Internet and intranet software. Microsoft, with its Windows franchise, has the dominating operating software in the PC market, which allows the company to sell other software solutions. The software giant has made inroads on mobile devices and internet based applications, and develops video game consoles and digital music entertainment devices. Microsoft was founded by Bill Gates in 1975 and is headquartered in Redmond, Washington.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $23.32 and calculated resistance at $26.41. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Microsoft shares.

Traders should evaluate their trade if they want to establish a position on Microsoft given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.