Chart Analysis: Are you ready to jump into Windows 8? As PC sales decline, Microsoft is hoping to stage a comeback for the PC with their release of the Windows 8 operating system. Today’s NinjaTrader chart of the day shows the daily price action of Microsoft stock ($MSFT). Savvy tech users have been trending towards the use of hand held devices over recent years and Microsoft knows it. They have tailored their new software for the use and collaboration of many different devices including notebooks, desktops and tablets focusing on the performance and design today’s computer users have come to expect. The Microsoft stock chart shows that traders are not buying into the hype and we have used several indicators from NinjaTrader’s over 100 free indicators to study price action. The Heikin Ashi indicator was applied to the bars to eradicate some market noise along with the Keltner bands to show a dynamic channel price has been staying within. Finally Stochastics have been added to help us identify when price has reached extreme conditions. The Fibonacci Drawing tool has also been applied and customized to show only 3 main measurements of this year’s price range: 0%, 50% and 100%. We can clearly see the recent sell off in Microsoft causing prices to drop below the 50% retracement area it has held above most of the year. While Microsoft believes slow PC sales are due to buyers waiting for Windows 8, traders seem to have other thoughts or may be waiting to see how Windows 8 performs before buying Microsoft stock.
Today’s chart can be created for free using NinjaTrader 7 and free end of day data from Kinetick.
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