Make a 16% Gain on Microsoft (NASDAQ:MSFT)
Mar 4th, 2009 | By Charles Delvalle | Category: Chart of the DayThe nerds of the world have a huge war going on: Microsoft versus Linux.
I’m not a nerd. So I don’t really care about the war. And although the real nerds (the guys who love Linux) say that one day Linux will rule the operating system world, I’d think they’re dreaming.
That’s because Microsoft (Nasdaq: MSFT) still makes operating systems that are easy to use. And most people in this world have had or been on a Windows-based PC in the past.
That makes Microsoft a very strong company.
MSFT’s share price has taken a beating lately. But right now this stock looks set to pop.
I’m not calling an end to Microsoft’s rout. I’m saying there’s a high probability that its share price moves higher over the next week or two.
That’s because the RSI and Slow Stochastic both show a very clear pattern. Every time the RSI and Slow Stochastic show this stock at oversold levels (happened only three times in the past year)shares go on to rally.
And as you can see, the RSI and Slow Stochastic are oversold right now.
If this follows the previous pattern, buyers should begin to flood the market in the next day or two and take share prices higher.
How high could the go?
Considering MSFT has a hard time passing its 50-day moving average, you can expect that average to act as resistance.
That would give you a decent 16% gain in no time at all.
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
