Microsoft Corporation (MSFT) beat 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) estimates when the company reported results after the close on July 22. The stock was above its monthly value level at $205.19 when the results were released. The software giant and component of the 澳洲幸运5官方开奖结果体彩网:Dow Jones Industrial Average opened July 23 above the monthly pivo♔t and then broke below this key level. However, the stock stayed above its quarterly and semianꦛnual pivots at $196.79 and $196.71.

Microsoft stock closed Monday, July 27, at $203.85, up 29.3% year to date and in 澳洲幸运5官方开奖结果体彩网:bull market territory at 53.8% above its March 23 low of $132.52. It is also 5.8% below its all-time high of $216.38 set on July 9. Fundamentally, Microsoft stock is overvalued with a 澳洲幸运5官方开奖结果体彩网:P/E ratio of 35.01 and a 澳洲幸运5官方开奖结果体彩网:dividend yield of 1.01%, according to Macrotrends.

This tech giant offers a wide array of products and services: operating systems for PCs, servers, phones, software in the cloud, video games, 🐷and online adꦕvertising. Microsoft also owns LinkedIn, which is a big deal because its purchase of the social media platform began an EPS winning streak of 17 consecutive quarters.

The daily chart for Microsoft

Microsoft stock has been above a 澳洲幸运5官方开奖结果体彩网:golden cross since March 15, 2019, when the 50-day 澳洲幸运5官方开奖结果体彩网:simple moving average rose above the 200-daไy simple moving average, indicating that higher p🔯rices lay ahead. This tracked the stock to its Feb. 11 high of $190.70. From this high, the stock fell by 30.5% to a low of $132.52 set on March 23.

After bottomin🐎g out at this low, the stock rebounded by 63% to its all-time intraday high of $216.38 on July 9. At the low, the Microsoft stock held its annual value level at $136.42 between March 16 and March 23.

The stock moved above its 200-day simple moving average on March 25 and above its 50-day simple moving average ꦛon April 13. This tracked the stock to its all-time intraday high of $216.38 set on Jul▨y 9.

Since the high, the stock has sta🌊yed above its quarterly and semiannual pivots at $196.79 an🏅d $196.71. Microsoft is currently trading below its monthly pivot at $205.19 and its weekly risky level at $214.93.

The weekly chart for Microsoft

The weekly chart for Microsoft is neutral, with the stock above its five-week modified moving average of $198.57. The stock is well above its 200-week simple moving average, or 澳洲幸运5官方开奖结果体彩网:reversion to the mean, at $110.50. The 12 x 3 x 3 weekly slow 澳洲幸运5官方开奖结果体彩网:stochastic reading is projected to end the week falling below the 澳洲幸运5官方开奖结果体彩网:overbought threshold of 80.00 with a reading at 79.26.

Trading strategy: Buy Microsoft sto෴ck on weakness to its quarterly and semiannual pivots at $196.79 and $196.71. Reduce holdings on strength to its weekly risky level at $214.93. The monthly pivot at $205.19 should be a magnet.

How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings was based upon 澳洲幸运5官方开奖结果体彩网:backtesting many methods of reading share-price momentum with the objective of finding the combination t🔴hat resulted in the fewest false signals. I did this following the stock market crash oꦿf 1987, so I have been happy with the results for more than 30 years.

The stochastic reading covers t෴he last 12 weeks of highs, lows, and closes for the stock. There is a raw calculation of the differences between the highest high and lowest low versus the closes.💙 These levels are modified to a fast reading and a slow reading, and I found that the slow reading worked the best.

The stochastic reading scales between 00.00 and 100.00, with readings above 80.00 considered overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an "inflating parabolic bubble" formation, which is typically followed by a decline of 10% to 20% over the next three to five months. A reading be🏅low 10.00 is considered "too cheap to ignore," which is typically followed by gains of 10% to 20% over the next three to five months.𒀰

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.