Microsoft Corporation (MSFT) beat 澳洲幸运5开奖号码历史查询:earnings per share (EPS) estimates when the company reported results after the close on July 22. The stock was above its monthly value level at $205.19 when the results were released. The software giant and component of the 澳洲幸运5开奖号码历史查询:Dow Jones Industrial Average opened July 23 above the monthly pivot and then broke below this key level. However, the stock stayeꦗd above its quarterly and semiannual pivots at $196.79 and $196.71.

Microsoft stock closed Monday, July 27, at $203.85, up 29.3% year to date and in 澳洲幸运5开奖号码历史查询:bull market territory at 53.8% above its March 23 low of $132.52. It is also 5.8% below its all-time high of $216.38 set on July 9. Fundamentally, Microsoft stock is overvalued with a 澳洲幸运5开奖号码历史查询:P/E ratio of 35.01 and a 澳洲幸运5开奖号码历史查询:dividend yield of 1.01%, according to Macrotrends.

This tech giant offers a wide array of products and services: operating systems for PCs, servers, phones, software in the cloud, video games, and online🧔 advertising. Microsoft also owns LinkedIn, which is a big deal because its purchase of the social media platform bᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚegan an EPS winning streak of 17 consecutive quarters.

The daily chart for Microsoft

Microsoft stock has been above a 澳洲幸运5开奖号码历史查询:golden cross since March 15, 2019, when the 50-day 澳洲幸运5开奖号码历史查询:simple moving average rose above the🐼 200-day simple moving average, indicating that higher prices lay ahead. This tracked the stock to its Feb. 11 high of $190.70. From this high, the stock fell by 30.5% to a low of $132.52 set on March 23.

After bottoming out at this low, the stock𒈔 rebounded by 63% to its all-time intraday high of $216.38 on July 9. At the low, t𝐆he Microsoft stock held its annual value level at $136.42 between March 16 and March 23.

The stock moved above its 200-day simple moving 𓂃average on March 25 and above its 50-day simple moving average on April 13. This tracked the stock to its all-time intraday high of $216.38 set on July 9.

Since the high, the stock has stayed above its quarterly and semiannual pivots at $196.79 and $196.71. Microsoft is currently trading below its monthly pivot at $205.19 and its weekly ris🎉ky level at $214.93.

The weekly chart for Microsoft

The weekly chart for Microsoft is neutral, with the stock above its five-week modified moving average of $198.57. The stock is well above its 200-week simple moving average, or 澳洲幸运5开奖号码历史查询:reversion to the mean, at $110.50. The 12 x 3 x 3 weekly slow 澳洲幸运5开奖号码历史查询:stochastic reading is projected to end the week falling below the 澳洲幸运5开奖号码历史查询:overbought threshold of 80.00 with a reading at 79.26.

Trading strategy: Buy Microsof🔴t stock on weakness to its quarterly and semiannual pivots at $196.79 and $196.71. Reduce holdings on strength to its weekly risky level at $214.93. The month🧸ly pivot at $205.19 should be a magnet.

How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings was based upon 澳洲幸运5开奖号码历史查询:backtesting ✤many methods of reading share-price momentum with the ob♎jective of finding the combination that resulted in the fewest false signals. I did this following the stock market crash of 1987, so I have been happy with the results for more than 30 years.

The stochastic reading covers the last 12 weeks of highs, lows, and closes for the stock. There is a raw calculation of the differences between the highest high and lowest low versus the closes. These leꦡvels are modified to a fast reading and a slow reading, and I found that the slow reading worked the best.

The stochastic reading scales between 00.00 and 100.00, with readings above 80.00 considered overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an "inflating parabolic bubble" formation, which is typically followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is conside♒red "too cheap to ignore," which is typically followed by gains of 10% to 20% over the next three to five months.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.