MSFT Technical Set Up Ahead of Earnings: A Sell-The-News Prescription?

Mike Paulenoff MPtrader

MSFT-- reports earnings after the close. Purely from a pattern perspective, the Dec.- Apr. bullish price channel shows its upper boundary line in the vicinity of 128.20, which should represent powerful resistance on a positive algo knee-jerk reaction to the MSFT news. If such a scenario unfolds atop a 37% four month advance, let's not be surprised by a sell-the-news response to an earnings beat the ping-pong's the MSFT price action from the upper channel boundary (128.20) to the lower channel boundary (120.00) in the hours/days directly ahead... Last in MSFT is 125.04/05

Author

Mike Paulenoff

MPtrader

Michael Paulenoff has been a student of and a participant in the world financial markets for the past 26 years, since his graduation from the Georgetown University School of Foreign Service in 1979.

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