On June 20, 2017 I included Microsoft (MSFT) in a Quick Hits update with General Electric (GE) and Johnson & Johnson (JNJ). One of my comments for MSFT in the article mentioned a $67 support level to go long.

now that MSFT’s share price has been consolidating and advancing above its resistance area, any pullbacks should find support in the $67 area as long as MSFT has not yet reached the 161.8% Target Line.

The $75 area is most likely just another stop on the way towards the $90 price objectives from the P&F Charts.

Let’s see how that $67 support level held up since that comment and if the $75 price level has been reached yet.

Microsoft (MSFT) Post-Earnings Pullback

The next chart is a 3 month daily candlestick chart. Short-term analysis helps to look for an entry point. On this chart I’ve also identified the date of the comment and the $67 support level. MSFT only reached $68.78 during its pullback and did not pullback all the way to the $67 support level. Then during its ascent, its share price fell just shy of my $75 upside price target.

Analyzing Pullback & Support Areas to Go Long for Shares of Microsoft (MSFT)

A Hanging Man candlestick pattern indicates a possible short-term correction. If that is the case, MSFT’s share price should find support at the 38.2% or the 50% Retracement Lines during the pullback.

Make sure MSFT’s share price starts to rebound in heavy buying volume to confirm the reversal from the Retracement Line. That should not be a problem for MSFT after its excellent earnings report at the end of last week.