Microsoft Stock Buy Trade Idea:
Microsoft was an easy stock to justify buying. It is probably one of the safest stocks with plenty of cash reserves. I tweeted the message below on the 2nd April 2020.
You can see the timestamp as proof. Below is a larger version of the chart posted.
Click chart to enlarge
Microsoft (MSFT) is a solid company, and probably one of the safest stocks to own in this market climate. It has gained from ‘work at home’ lock-down, has an operating margin of 36% and ROE of 43%. Microsoft’s free cash flow is, wait for it, 40 Billion.
Microsoft stock was an easy buy at the $150 support level, from where it bounced and hasn’t looked back, yet.
Microsoft Stock Buy – Update 17th April 2020
Be aware earnings are due Apr 29, 2020 after market hours. Consensus EPS Forecast is $1.27
Microsoft has trended higher and is now heading into resistance at $180.
See the chart below.
Click chart to enlarge.
$180 will be resistance and price can pullback, but as long as $160 holds as support, the trend is still up. I will let you decide what is the right course of action for you at the $180 level. I believe short term traders will take some profits here, and long term Investors will do what they do best, hold on for a bigger move.
As I have stated before, I don’t give exit signals as I have readers who trade different holding timeframes. Some are day traders, others are long term investors. So please follow your own trading plan for exits.
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