Updated from Jan. 28

By Stockpickr Guest Columnist Ira Krakow

In "

Trading BofA Using Moving Averages

," I discussed how


technical analysis can pinpoint short-term trading opportunities even in a beaten-up stock such as

Bank of America

(BAC) - Get Report


In this article, I will introduce Bollinger bands, a more-sophisticated technical analysis tool based on the moving average. Bollinger bands can show when the stock price is ready to break out, either sharply upward or downward, or whether the price is lazily churning without any clear movement either up or down.

Let's use this tool to determine if


(MSFT) - Get Report

is in a serious downtrend or if recent news has created a buying opportunity.

To read more,

visit Stockpickr.com


In midday trading, Microsoft was recently trading at $17.25 per share (down 1.82% for the day; down 11.16% year-to-date).

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