2 Ways to Profit From Microsoft

Microsoft Corporation (NASDAQ: MSFT) — This stock mirrors the recent price history of the broad stock market.

This chart is a study of the current market condition with a huge double-top, a penetration of a significant support line at $28, and a recent history of high volume on down days and low volume on up days.

But its chart also shows a trading buy signal from the stochastic indicator, telling us that a rally to its recent support line (now resistance line at $28) could occur before turning down again.

Traders may want to take speculative positions in call options now to capture a 2-point trade. But they will want to put a stop-loss order just under $24.

Short sellers should be alert to a possible breakdown at $24 with a target of $22 or possibly even $20.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.

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