Long Term Technical Analysis Of Microsoft (MSFT)

Microsoft (MSFT)

A long term investor in Microsoft has definitely experienced the ups and downs of the markets over the past 28 years. It had an amazing growth run in its early days, breaking through our short price line in April of 1997, and then just kept going until it peaked in December 1999.  Those who shorted it in 1997 would have seen a 500% paper loss until the levy finally broke, sending the stock from $43 to $16 during the dot com bust.  

From 2000 to 2009, an investment in Microsoft was dead money, but after the crash of 2008-2009, you would have had a tremendous buying opportunity as its stock price broke below both its growth and value lines.  With quality companies like Microsoft, such an opportunity only shows up once in a lifetime, if ever.  Currently Microsoft is experiencing a break out and just needs a positive catalyst to send it much higher. The current decision as to who will be chosen as the next CEO will generate either a positive or negative catalyst, and that is why we advise waiting for such an outcome before buying.  The long term future looks bright for Microsoft so you will have plenty of time to make money with it once the news on its new CEO is released.

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