Over the years, I am sure that many of you have heard Microsoft (MSFT) called by its nickname “Mister Softy”. The stock charts for Microsoft have been anything but soft though. At the end of August 2017, its share price made a new all-time high.

I had a request come through the Idea Chamber, the members-only forum, to re-analyze MSFT’s charts and confirm that its bullish price objectives I’ve previously calculated are still in play.

Microsoft (MSFT) – Mister Softy

In July 2017, after MSFT’s most recent earnings report, I posted a 1 chart article and made the following comments:

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.

I do anticipate it finds support here though and continues its ascent towards higher share prices.

This first chart for Mister Softy (MSFT) is a 6 month weekly candlestick chart. The Hanging Man candlestick pattern is located 2 days before my previous article. The candlestick pattern was indicating a short-term correction as I anticipated. MSFT ended up pulling back right into the zone between the 38.2% and 50% Retracement Lines as anticipated. It now is breaking out towards higher prices as anticipated.

Looks like MSFT’s share price pulled back into my preferred “scale-in purchase area” a couple of times. Its share price has since started to rebound, which is confirmed by its MACD Histogram indicator.

Now let’s focus on the second comment from my July article:

I do anticipate it finds support here though and continues its ascent towards higher share prices.

Let’s use some of the Trading Tools to re-calculate some shorter-term and longer-term price objectives.

Mister Softy – Shorter-Term Price Objectives

This is a 6 month daily candlestick chart with[s2If !current_user_can(access_s2member_level1)]……

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I review both shorter-term and longer-term price objectives for MSFT’s share price, both of which are bullish. And last but not least, I illustrate a strong support area below its current price also in case of any market weakness over the next couple of weeks.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] a green Fibonacci Extension Tool placed on the previous uptrend and pullback. This helps to calculate price objectives for the next leg of the uptrend.

If you have not yet purchased shares of MSFT to go long but have wanted to, make your first scale-in purchase of 3 purchases in the gray shaded box. The shorter-term price objectives are going to be the 100% and the 161.8% Target Lines.

The MACD Histogram on this daily chart seems to confirm the uptrend continuing. A pullback into the gray shaded box may come tomorrow or Wednesday. That is what is expected if one does happen.

Mister Softy – Longer-Term Price Objectives

This next chart is a 5 year monthly candlestick chart for Mister Softy to analyze its charts from a longer-term perspective. First thing, the MACD Histogram is starting to show a slow-down of buying momentum. This tends to identify consolidation areas during the uptrend.

If the MACD Histogram is identifying a consolidation area, the $67 price level is the area to make a scale-in purchase for a continued pullback.

MSFT – Point & Figure

Both P&F Charts indicate higher prices for Mister Softy. The price objectives for the 2 different Point & Figure Charts are:

• High/Low Chart – $83 Bullish Price Objective
• Closing Chart – $122 Bullish Price Objective

The Closing P&F Charts $122 bullish price objective is even higher than the Golden Ratio (161.8% Target Line) on the above 5 year monthly candlestick chart.

Mister Softy Summary

The breakout continues for Mister Softy. Stay long with a core position. 100% and 161.8% Target Lines (both long and short-term) typically provide trading opportunities. These opportunities involve selling some shares at those levels and then look to repurchase those shares on an estimated 10% pullback.

The only thing that is a little concerning is the MACD Histogram on MSFT’s monthly chart. It does look extended a little bit. But just because the buying momentum is slowing does not automatically mean the share price will consolidate or correct. But it could be an indicator of a little more consolidation to come. The shorter-term MACD Histogram is showing buying momentum. That is what I think should be focused on here for now.

If a continued consolidation does happen, wait until a break below the $70 area before making another scale-in purchase. Probably around the $68 range. But a continued consolidation is not what I anticipate. I just want to make sure TSC members are prepared for other possible outcomes, even when they are not anticipated.

What is anticipated are more gains for Mister Softy’s shares price. Shorter-term, stay long until at least the $82, another 10%+ gain to the upside. Longer-term, you are holding out for at least $100.

If you are ever unclear about an article, just leave me a question or ask me to clarify a point.

On deck: Banking sector & IAG updates

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