Singapore (28 July 2020) — The trillion dollar company Microsoft (MSFT) needs no introduction. It’s been beating the S&P500 Index since November 2019 and continues to do so even during the major market correction, which started end of February this year. And in recent weeks, its been outperforming the S&P 500 Index by a whopping 42% as depicted by the chart below. MSFT is a Shariah-compliant company as per AAOIFI guidelines.
MFST’s fundamentals further support such strong performance. In the face of global economic meltdown, its EPS shows a positive change of 7% on the last quarter, sales increased a modest 13% on the last quarter with an annual ROE of 40%. MSFT market cap is at USD1.52 trillion with institutions holding 41% of its shares including the likes of Fidelity, JPMorgan, Well Fargo and Vanguard.
Chart Link: https://www.tradingview.com/x/qZEa3sxE/
MSFT chart analysis depicts current price action is approaching the MA50 with MA200 providing strong support since mid-March 2020. MSFT price action suggests a healthy correction after consecutive 5 weeks of making new highs from its previous peak of USD 190.70 on 11 Feb 2020. This suggests to re-entry opportunities once the price is able to show us a rebound from the MA50. We would like to see a lower volume during the corrective move and a strong volume action when the price breached the resistance line above. Conservative trader may wish to wait until the next breach of resistance level at USD 213.94 or a break out from the previous peak of USD 216.38.
Stop loss may be placed according to your risk tolerance level, but not going more than 7% would be ideal. Our target profit range would be around the 20% before we can expect some price correction. However, this target could change from time-to-time and you should assess it accordingly on a daily/weekly basis. Especially when the price closes below the first support line or below the MA50.
Overall, MSFT chart still shows a bullish bias, as the MA200 provided a good support in the past (from 23 Mar 2020) lifting the price to the current level. -/-
Disclaimer: Mr Mukhriz Mangsor is a Certified Financial Technician and an independent trader who contributes to www.halaluniverse.net on a regular basis. He focuses his attention on the technology stocks listed on Nasdaq. The views, opinions and information expressed in this article are purely Mr Mangsor’s and are not recommendations to buy the stock. They don’t necessarily represent the views of Halal Universe. Readers taking positions based on Mr Mangsor’s views are doing so at their own risk.
