RSI Touches 68.88 For Microsoft Corporation (NASDAQ:MSFT) - Stock Standard

Microsoft Corporation (NASDAQ:MSFT)’s EPS growth this year is 19.30% and the trailing 12-month EPS is $4.3. Covering sell-side analysts are estimating company growth for next year to be 12.60%. On a consensus basis, analysts have given a recommendation of 1.7 on company shares.

Since the start of the calendar year, Microsoft Corporation (NASDAQ:MSFT)’s stock has changed 18.04%. Over the last five trading sessions, the stock has moved 1.65%. For the past month, Microsoft Corporation’s stock has been 8.61%, 17.62% for the last quarter, 4.10% for the past six months and 29.78% for the past 52 weeks.

Based on current stock levels, Microsoft Corporation shares are trading -0.77% off of the 50-day high and 17.34% away from the 50-day low.

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples.

When focusing on technical stock analysis, traders and investors may choose to study the ATR or Average True Range. The present 14-day ATR for Microsoft Corporation (NASDAQ:MSFT) is currently standing at 1.73. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.

Currently, the 14-day ADX for Microsoft Corporation (NASDAQ:MSFT) is sitting at 33.9. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Checking in on some other technical levels, the 14-day RSI is currently at 67.21, the 7-day stands at 68.47, and the 3-day is sitting at 71.91. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Microsoft Corporation (NASDAQ:MSFT)’s Williams %R presently stands at -17.55. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Taking a closer look from a technical standpoint, Microsoft Corporation (NASDAQ:MSFT) presently has a 14-day Commodity Channel Index (CCI) of 111.43. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

Following shares of Microsoft Corporation (NASDAQ:MSFT), we can see that the average consensus target price based on contributing analysts is currently $124.43. Wall Street analysts often provide price target projections on where they believe the stock will be headed in the future. Because price target projections are essentially the opinions of covering analysts, they have the ability to vary widely from one analyst to another. Navigating the equity markets can seem daunting at times. Finding ways to identify the important data can make a big difference in sustaining profits into the future. As we move closer to the end of the year, investors will be watching to see which way the momentum shifts and if stocks are still primed to go higher. Investors might choose to rely heavily on analyst research and corresponding target predictions, or they may choose to use them as a guide to supplement their own research.

Equity analysts will routinely provide stock price target projections. Many investors are highly interested in where the analysts view the stock heading in the future. Presently, analysts polled by Zacks Research have set a consensus target price of $124.43 on shares of Microsoft Corporation (NASDAQ:MSFT). Price target estimates can be calculated using different methods, and they may vary depending on the individual analyst. A thoroughly researched analyst report will typically provide detailed reasoning for a specific target price estimate. Some investors may track analyst targets very closely and use the data to complement their own stock analysis.

Investors might be reviewing portfolio performance over the last six months. Many investors will be tracking shares that are trading near important levels such as the 52-week high and 52-week low. When a stock is trading near new 52-week high, investors may have to decide whether they should sell or hold on for future gains. Stocks that are moving towards a new 52-week low may also be worth keeping an eye on. There are many factors that can have an impact on the health of a particular stock. This is one reason why stock picking can be extremely tough at times. Because there are always so many things to monitor, it may be next to impossible to build a formula that will continually beat the market. Even after all the applicable information has been examined, the investor still has to make sense of the data and figure out what to do with it. Knowing how to use company data can end up being the difference between handsome gains and crippling losses.

Monitoring recent stock price activity on shares of Microsoft Corporation (NASDAQ:MSFT) we have noted that the stock price has been trading near $119.89. Turning the focus to some historical price information, we note that the stock has moved 15.72% over the previous 12 weeks. Since the start of the year, we note that shares have seen a change of 18.04%. Over the last 4 weeks, shares have seen a change of 8.61%. Over the last 5 sessions, the stock has moved 2.53%. After a recent scan, we can see that the 52-week high is currently $120.22, and the 52-week low is presently $89.71.

There are many different strategies that investors use when entering the stock market. Beating the market is no easy task, and many veteran investors would echo that sentiment. When following the day to day happenings in the stock market, it can be easy to get distracted. There is a lot of emphasis on what is happening in the moment, and it can be tempting for investors to get caught up in the chaos. Everyday market fluctuations can sometimes cause investors to second guess their stock selections. Investors who are able to filter out the noise and focus on the most pertinent information may find themselves in an elevated position in relation to the rest of the investing field.

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