Mr. Softy is back! Microsoft (MSFT) has looked good for a couple of years now, but the recent action is quite constructive. Based on what I’m seeing in the chart, there could be more upside to come. Money flow has remained positive, turnover has been solid and option call buying has been decent.
The recent pullback took the stock down about 9%, but it has bounced back smartly. There is no catalyst like a solid earnings report to stoke the buyers. It appears the stock has institutional support – and those are the names we gravitate towards.
Since the breakout in early October, this stock has barely budged. It is currently knocking on the door of $100 per share. I think it’ll hit this mark quite soon, but even if there is a modest pullback that would be a great chance to get on board.
