Last up this week is Microsoft (MSFT - Get Report), a stock that's showing a similar setup to JPM, just one that's delayed a bit. Microsoft has enjoyed a stellar rally in 2012, pushing more than 20% higher following a breakout above longstanding resistance at $27.
In the past week or so, however, shares have been consolidating in a tight range as investors justify the size of the move. That consolidation is creating an if/then Setup in shares of MSFT right now.
Essentially, an if/then Setup is a trade whose direction is contingent on the direction that shares move outside of MSFT's horizontal channel. Put a different way, if MSFT pushes above resistance at $31.68, then it becomes a buy. Otherwise, if shares fall below support at $31, then the stock is a short candidate.The narrowness of the range (just 68 cents) means that traders won't have to wait long for a signal. Microsoft, one of Greenlight Capital's top holdings , shows up on recent lists of 10 Companies in the "Ultimate Stock Pickers" Portfolio and 3 Booming Tech Stocks to Own for 2012 . Follow @stockpickr