MSFT Stock: a Bellwether Stock
Buz Investors Trend in Microsoft Stock It may be hard to believe, but I view Microsoft Corporation (NASDAQ:MSFT) stock as a bellwether gauge, and a measure of the overall health of the tech-heavy NASDAQ index.
My view has nothing to do with the company’s foray into cloud computing and skewing its business model away from the “Windows” platform and the personal computer (PC). I base my view on simply looking at and analyzing the MSFT stock chart. It is indeed a picture of beauty, and it continues to suggest that higher prices are in the cards, and that an equity bull market is still intact.
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Trend in Microsoft Stock
This uptrend line has been in development for eight years, and it has been tested on numerous occasions. Every time, buyers have stepped in at this level to create the necessary support to keep it intact. This uptrend line is so pristine that it is difficult to refute its importance. It has become the dividing line between a bullish and bearish market and, as long as Microsoft stock is trading above it, higher prices are expected, and the general health of the market remains in check.
If MSFT stock ever did manage to trade below this trend line, it would serve to suggest that the bull market that began in 2009 had concluded, that and a larger correction was set to ensue. Due to the nature of their business dealings, I would have to believe that a general bear market in technology stock was also set to ensue.
This bullish run off of the July lows has been supported by a similar uptrend line, only on a smaller scale. This bullish trend within an overall bullish trend serves to reinforce the notion that the trend toward higher prices is set to continue. If this premise is true, then the tech-heavy NASDAQ index is also set to continue its advance.
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