Microsoft ( MSFT) is another massive technology name that's showing traders a bearish setup right now. The pattern to watch in MSFT is a double-top, a trading setup that's formed when a stock hits hard resistance twice at the same level, then reverses lower each time. The short signal comes when MSFT breaks down below the support level that separates the two tops. That's especially troubling for MSFT shareholders. Shares closed below the $30 breakdown level in yesterday's session, a move that could be confirmed today with continuation below $30 early in Thursday's session. While the break of $30 we're seeing today is only on the edge of being material, it's an opportunity to build a starter position short MSFT. An RSI breakdown into oversold territory could accelerate the selloff even more in May. >>10 Stocks to "Like" When Facebook Goes Public If you decide to take this trade, I'd recommend putting in a protective stop just above MSFT's most recent swing high at $31. Microsoft is one of the top holdings at Seth Klarman's Baupost Group and also shows up in the portfolio of David Tepper's Appaloosa Management.