Microsoft (MSFT): Get the Microsoft Corporation Report (MSFT) stocks rose on Wednesday by about 1%, but disappeared from highs as the market struggled for traction.
Shares rose nearly 2% earlier in the day, but have since fallen slightly. That said, the news is still bullish and Microsoft’s shares are just a hair’s breadth from its all-time high.
On Tuesday after the close, Microsoft announced an 11% increase in its dividend and approved a new repurchase program of up to $ 60 billion.
Of course, this still leaves Microsoft’s dividend yield at a low of 0.83%, while its $ 60 billion repurchase program will only have a small impact as its market capitalization is north of 2 , $ 25 trillion.
However, I think investors will find the gains of one, three and five years of 47%, 166% and 437%, respectively, of the shares more attractive than some percentage points of dividend.
With the stocks close to the highs, let’s look at the charts.
Microsoft Stock Exchange
Daily chart of Microsoft stocks.
Chart provided by TrendSpider.com
In August, Microsoft shares rose, which gave us a bullish candle and sent the shares to all-time highs.
Since then, however, stocks have struggled in rallies to $ 305, with that level as resistance.
The recent drop, which added to a five-day shift in the Nasdaq Composite, caused Microsoft to fall below the 10- and 21-day moving averages. However, it did not end the 50 days.
Maybe I would do it without today’s news. In any case, stocks have retreated above the 10- and 21-day moving averages, but continue to struggle with the $ 305 level.
This leaves the oxen in a frustrating but clear situation.
Disadvantage, Microsoft has to maintain the $ 300 level, along with the 10- and 21-day moving averages. Then comes the recent low, about $ 294.
On the plus side, look at $ 305. A boost of more than $ 305 and the 161.8% extension is on the table, close to $ 313. On top of that, the bulls can use an intermediate target of $ 325, which jeopardizes the 261.8% extension.
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