The post-earnings consolidation Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report has been tracing out for the last six weeks may soon resolve to the upside. The stock has been well bid since Wednesday's opening bell and is up just shy of 1.3% as the session ends. This impressive move could spark a fresh rally leg leaving a major support zone behind in the process.

Shortly after Microsoft's July 20 earnings report the stock ran out of steam. A week later, a healthy and very narrow consolidation phase began. The stock continued its string of higher monthly lows while working off nearly all of its overbought condition. This month the 50-day moving average, which has held important lows since the election, is back in a supportive role. A breakout in the near term will have very solid base underneath.

Microsoft will be in much better shape once the July high is cleared. Investors should view the stock as a low risk buy near current levels. A convincing take out of the $75.00 area on accelerating trade should provide the spark needed for a fresh rally leg. Currently MSFT is still rangebound but there is plenty of room to run.

On the downside, a close back below the $71.00 area would violate the August lows sending a clear warning sign.

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