This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Facebook Sympathy Trades From the Tech Sector


Microsoft (MSFT - Get Report) is another massive technology name that's showing traders a bearish setup right now. The pattern to watch in MSFT is a double-top, a trading setup that's formed when a stock hits hard resistance twice at the same level, then reverses lower each time. The short signal comes when MSFT breaks down below the support level that separates the two tops.

That's especially troubling for MSFT shareholders. Shares closed below the $30 breakdown level in yesterday's session, a move that could be confirmed today with continuation below $30 early in Thursday's session. While the break of $30 we're seeing today is only on the edge of being material, it's an opportunity to build a starter position short MSFT. An RSI breakdown into oversold territory could accelerate the selloff even more in May.

>>10 Stocks to "Like" When Facebook Goes Public

If you decide to take this trade, I'd recommend putting in a protective stop just above MSFT's most recent swing high at $31.

Microsoft is one of the top holdings at Seth Klarman's Baupost Group and also shows up in the portfolio of David Tepper's Appaloosa Management.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ADBE $77.03 0.64%
FB $82.79 1.50%
GOOG $563.10 -0.35%
MSFT $47.67 -0.42%
STX $58.36 0.03%


DOW 18,143.27 +63.13 0.35%
S&P 500 2,121.30 +3.61 0.17%
NASDAQ 5,102.8090 +10.7240 0.21%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs