This Day On The Street
Continue to site
ADVERTISEMENT
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 Big Stocks Ready to Slingshot Higher

Microsoft

Microsoft (MSFT - Get Report) is another double bottom trade to watch this week - just a sloppier one. The stock made two bottoms (one in June and one in July) before coming back up to test the pattern's breakout level at $30.75. And since then, they've been trading right around that price level.

>>3 Tech Stocks Hedge Funds Are Buying

The fuzziness of MSFT's resistance level at $30.75 makes getting confirmation critical. Clearly this stock can trade above $30.75 without actually triggering a breakout. For this trade, my preferred breakout signal is a push above $30.75 resistance followed by a second consecutive day that stays above it. Traders got that confirmed breakout signal last week following news that Microsoft was expanding its presence in China.

Since then, shares have settled back down to test newfound support at $30.75 (once broken, resistance becomes support for a stock). When a stock breaks out only to reverse and re-test its breakout level, it's called a "throwback." Throwbacks may seem negative on their surface (shares are moving lower, after all), but they're actually positive because they reaffirm the stock's ability to hold newfound support at what was previously a resistance level. And it gives traders the opportunity to buy right at support.

If you want to take this Microsoft trade, I'd recommend waiting for shares to break $31.25 again before jumping in. MSFT is a notoriously sloppy chart, and it's important to make sure any moves higher are material before putting your cash on the line.

Microsoft shows up on recent lists of 5 Stocks to Store Away for 5 Years and 3 Sleeping Giants Ready to Bounce Higher.
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

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CAJ $32.37 1.30%
CAT $83.55 -0.98%
MNR $9.94 0.81%
MSFT $44.26 -0.32%
RDS.A $56.25 -1.20%

Markets

DOW 17,698.28 -31.83 -0.18%
S&P 500 2,071.64 -5.14 -0.25%
NASDAQ 4,995.0480 -14.1660 -0.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs