How to Trade Microsoft Today -- Must-See Charts

BALTIMORE (Stockpickr) -- Tech giant Microsoft (MSFT) is a perennially high-volume stock -- and today, shares are correcting on the heels of a technical setup.

Microsoft has been heating up from a momentum standpoint in the last few months, as shares rallied more than 14% from April's lows to today. But despite the recent upside, Microsoft is starting to show some cracks this summer. Recently, shares have been forming a descending triangle pattern with a breakdown level at $45.50.

Put simply, if that $45.50 level gets violated, then Microsoft could see a pretty significant price setback. On the flip side, a breakout above $47 clears the way to a re-test of 2015 highs.

Either way, it's critical to wait for the move to happen, then react.

For another take on Microsoft, check out "Microsoft Stock Chart Points to a Rally Around the Corner."

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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