This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Year-End Trades From the Tech Sector

Stocks in this article: MSFTMUSYMCAZPNVZ

Microsoft

2012 has been a pretty mediocre year to own Microsoft (MSFT). Even though the technology giant has climbed 4.24% so far this year, that performance is awful compared to the nearly 14% climb the rest of the S&P 500 saw over that same period. But Microsoft's chart indicates that could change...

For the last few weeks, Microsoft's price has been consolidating sideways in a rounding bottom pattern. A rounding bottom looks exactly like its name suggests: it's a U-shaped curve that connects the swing lows for a stock. A horizontal resistance level that connects the highs is our breakout level to watch -- in MSFT's case, it comes in at $27.75. That means that a break above that $27.75 level is the buy signal for this stock right now.

The fact that a move above $27.75 would coincide with a break of the downtrend that's been holding shares lower since September is important -- it magnifies the upside potential for shares by removing another important upside barrier. Momentum adds some extra confidence to this trade -- 14-day RSI has been trending higher since the bottoming started. Since momentum is a leading indicator of price, that's a good sign that MSFT is likely to test $27.75 this week...

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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!
DOW 17,096.36 +122.05 0.72%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,537.8040 -11.4220 -0.25%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs