➡ One of the most basic principles in technical analysis is that when price breaks above a well-defined resistance, that same level often flips its role and starts acting as support. This happens because what was once a selling zone becomes an area where buyers are now willing to step in.
MSFT presents a textbook example of this behavior.
➡ In late 2023, the stock delivered a strong breakout above resistance zone of 350. After the breakout, price rallied nearly 30% before pulling back to retest this same area. That retest also aligned closely with the 50% retracement of the entire rally from the October 2022 lows to the July 2024 highs, adding further technical significance to the zone.
➡ The successful hold of this former resistance led to an even stronger move. MSFT then went on to stage a sharp rally of nearly 60%, advancing from around 344 to 555.
➡ At present, the stock is once again in a corrective phase, moving back toward the 450 zone- a level that previously acted as resistance and now has the potential to function as support.
➡ If this zone manages to hold, the probability of another upside leg increases, and a move back toward 555 or even higher levels cannot be ruled out.
Share your thoughts in the comment section below.
Thanks for reading.
📣Disclaimer:
Everything shared in this idea is meant for education and general awareness only. It’s neither a financial advice, nor a recommendation to buy, sell, or hold any asset. Do your own research, manage your risk, and make sure you understand what you’re getting into.
MSFT presents a textbook example of this behavior.
➡ In late 2023, the stock delivered a strong breakout above resistance zone of 350. After the breakout, price rallied nearly 30% before pulling back to retest this same area. That retest also aligned closely with the 50% retracement of the entire rally from the October 2022 lows to the July 2024 highs, adding further technical significance to the zone.
➡ The successful hold of this former resistance led to an even stronger move. MSFT then went on to stage a sharp rally of nearly 60%, advancing from around 344 to 555.
➡ At present, the stock is once again in a corrective phase, moving back toward the 450 zone- a level that previously acted as resistance and now has the potential to function as support.
➡ If this zone manages to hold, the probability of another upside leg increases, and a move back toward 555 or even higher levels cannot be ruled out.
Share your thoughts in the comment section below.
Thanks for reading.
📣Disclaimer:
Everything shared in this idea is meant for education and general awareness only. It’s neither a financial advice, nor a recommendation to buy, sell, or hold any asset. Do your own research, manage your risk, and make sure you understand what you’re getting into.
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.