Microsoft follow-up

I wrote an entry on Microsoft around 2 weeks ago due to a discussion with my sister-in-law. In that entry I was quite unsure of the direction it was heading and mentioned that I might need to wait another few weeks to be clearer.

As the trend of Dow Jones, Hang Seng and Nikkei has so far been going the direction I have estimated, I have decided to look into Microsoft this week.

Fig 1. Microsoft weekly chart

There are more certainties this week as to which direction Microsoft is heading, it tested the joint 8 & 21-week moving average resistances and failed to penetrate through, since then it has retreated.

At the same time, it is quite clear that there is a golden cross between 8 and 21-week moving averages, confirming its short and medium trend downward, plus the gradient of 55-week moving average is turning more gradual, indicating a possible change in momentum. 

Personally, I feel that Microsoft is heading south, at least until the 21-week moving average touches the 55-week, by then Microsoft itself should be below the 55-week moving average mark.

The support levels I am looking at are 267.688 to 270.244 and if this does not hold, 228.833 to 246.519.