Microsoft: A Chart View

Microsoft's much anticipated dividend boost did little to advance the stock Wednesday as the share price continued to lag rivals.
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NEW YORK ( TheStreet) -- Microsoft's (MSFT) - Get Report much anticipated dividend boost did little to advance the stock Wednesday as the share price continued to lag rivals.

Apple

(AAPL) - Get Report

is the king now and the once dominant Microsoft seems to have little buzz to it anymore. There was a sign of strength on the daily chart back on Sept. 13 but it appears that the low of that bar is now the target of the latest pullback.

On this chart and for this time frame, Microsoft is a hold at best. The current price is trapped between the tight support and resistance zones as shown. Which way might it resolve? If you pull the chart back a better perspective of that probability can be ascertained.

On this time frame, the clarity of the trend is realized, and it is lower. There is volume at the bottom which will get tested. That low was $22.61 and how price and volume acts as the low is tested will tell you what to expect next. Unfortunately, Microsoft is in a confirmed bearish down trend on this time frame. Resistance up above is stiff and the most likely direction remains lower. How low?

On the monthly chart, you can use the potential AB=CD down price projection to make that estimate. Although the lows would need to be taken out with volume expansion to make this projection likelihood, if it does happen the price target is $17.61. That price point is right at the bottom of the support zone on the long-term time frame.

Microsoft may reinvent itself and surprise us at some point but for now, I wouldn't count on it. The chart says that large players aren't.

Thanks for reading and until next time, just keep trading the charts!

At the time of publication, Little had no positions in the stocks mentioned.

L.A. Little, author, professional trader and money manager, writes daily on

www.tatoday.com

, a free educational site for traders and investors. He has been featured in numerous publications and is the author of

Trade Like The Little Guy

.

His background includes degrees in philosophy, computer science, computer information systems and telecommunications. With a trading philosophy centered on capital protection first and the accumulation of consistent gains over time, L.A. espouses a simplistic technical approach to trading the markets that is a throwback to the days of past. With a focus on swing points and the qualification of trends, L.A. provides a breath of fresh air to an otherwise crowded room of derivative indicators with the emphasis on technical minutiae.