Advanced Microsoft Channel (Daily)

13 thg 11, 2022

Here is a strong channel (number of touches and correlations) of Microsoft.
Look to sell the highs (pink box) and buy the lows (green box).

I think it makes sense to buy with reduced risk as this is a bearish channel and the flow of money is to the downside.
That means that longs will fail more often.

It's already at a sell zone, so it just needs a bearish candlestick pattern for me to enter shorts.
Keep in mind that the lower than expected CPI numbers is suggesting to some people that the fed will increase rates at a slower pace.
This lead to the huge gap up and strong bullish bar.
Will that momentum continue and we see a channel breakout?

For now, I'll stick with the technicals and be more short bias than long bias.

All the best...

Cheers.