Welcome back everyone. 1
Now in this lecture we'll analyze one more chart that is Microsoft Corp. We will analyze the chart for the perspective 2
of intermediate positional trading. 3
And for that perspective our 3D charting will be weekly daily and hourly 4
So first of all we will analyze the weekly chart of the stock and we will apply three moving averages that 5
are hundred, two hundred and fifty that we have discussed in the previous live analysis of Apple incorporation. 6
So for this stock hundred EMA is acting as a dynamic support level. 7
And this is our trade initiation zone. 8
Every time when prices take support on this EMA we can go long in this stock. 9
So this was our entry point and every time when prices take support on this EMA 10
we can go long in the stock. 11
Now we will analyze the daily chart this is the daily chart for the stock and prices are in uptrend now 12
you can see prices were in uptrend. 13
And then we got a cup and handle pattern in this stock. 14
See this was a rainbow moment. 15
This was cup and handle pattern. 16
Prices are range bound. 17
This is the resistance line. 18
This is the support level. 19
So when prices were range bound we got a cup and handle pattern, cup and handle pattern is a continuation 20
pattern. 21
And we found a pattern in an uptrend and this pattern gives us a signal of continuation of the trend. 22
After the formation of cup and handle pattern prices are going in upward direction in uptrend and taking 23
support on 50 EMA on daily time frame chart. 24
Every time when prices are taking support on 50 EMA we can go long. 25
This was our entry point and this was our next entry point and there were so many points where we could 26
go long in the stock. 27
Now this is our trend line for the stock prices are going in upward direction. 28
So this is the uptrend line after the formation of cup and handle pattern. 29
we could go long in the stock 30
every time when prices are taking support on this trend line 31
So this was our first point. 32
Then second and third this is fourth and fifth and sixth and this is seventh point then at seven points 33
on this trend line and these seven points 34
were our entry point for the long position for intermediate positional trading now prices are very far 35
from this trend line and we will analyze this current portion. 36
See this was our previous entry point when prices were taking support on this trend line. 37
I have apply Fibonacci tool to this last swing. 38
So this was our previous entry point moving averages and also giving us a buying signal RSI is above 39
50 level and MACD is also giving a bullish 40
crossover 41
So this point was our previous entry point for the intermediate positional 42
trading on daily chart 43
Now currently prices are going in upward direction and I'm expecting an up move upto next to resistance 44
level 45
But our fresh entry point will be when prices will retrace up to trend line or 50 EMA. 46
But those who are already long in this stock can hold their position up to next resistance level. 47
That is 1.272 48
Fibonacci extension level and 76.18 level but this time is not 49
for the fresh entry. 50
We should wait for the prices to retrace up to the extent of trend line.