Mortimer Arthur
10-22 17:53

$Microsoft(MSFT)$ NOV20 555C, actionable here.

Zone: $529.22 to $536.68

Invalidation: close under $524.43

Objectives: $553.72, then $565

The math: up 3.9% to the first objective and 6.0% to the second, against 1.6% risk on the invalidation, better than 3.5 to 1 to the second.

Picture a sturdy fence that three storms have pushed on this month and it still stands straight. That is this swing setup. Microsoft dipped toward 524 to 526 dollars on October 16, again on October 20, and again recently, and buyers held it every time before a close at 532.95 dollars. In plain words, that floor is where sellers run out of strength, and the October 28 earnings report is the next push that could carry price back through the old high near 553.72 dollars.

Watching the dip toward 529 dollars, holding the top of that floor would suggest buyers still trust it.

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