Microsoft ( MSFT) is another name that's been showing traders a big technical setup in the past couple of months; I talked about it last week, but the latest developments in this stock warrant a second look. Despite the fact that shares of the $234 billion software firm have fallen more than 10% in the last four months, it looks primed for a reversal. That's because after consolidating sideways for the last quarter, MSFT is finally breaking out above its nearest horizontal resistance level at $28. That breakout indicates that buyers have finally mustered enough wherewithal to take out any excess supply of shares above that $28 price. That's a buy signal. This week's breakout also coincides with a move above the long-term downtrend resistance level that's connected Microsoft's swing highs since the summer. With a downtrend over and a reversal in play right now, it could be a worse time to buy MSFT. If you decide to jump in here, I'd recommend keeping a protective stop at the 50-day moving average.