Updated from Jan. 28

By Stockpickr Guest Columnist Ira Krakow

In "

Trading BofA Using Moving Averages

," I discussed how

moving-average

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

Microsoft

(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).

Guess Who's on Stockpickr Answers Today:David Peltier will be on Stockpickr Answers today (Friday, Jan. 30) to respond to questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- for free.

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