Microsoft (NYSE: MSFT) was closed over 2.8% higher on Friday, bulls were in clear control after a gap-up at the opening. MSFT looks to be gaining momentum for a rally after huge buying volumes were seen on Friday. MSFT saw a sharp rally in its price in October where it surged by over 17%, after which MSFT started its correction in November. It is looking like MSFT could be ready to start a fresh rally after the correction, as it has recovered strongly from its lows in November.
Many investors are now looking for opportunities to enter MSFT in hopes of a new all-high soon, however, is it too late to buy MSFT now?
After hitting a new all-time high in November, MSFT corrected to the Fibonacci 0.5 level, and it is looking like the correction is over and MSFT has started its rally towards a new all-time high.
Huge buying volumes were also seen on Friday, this is suggesting that the correction is over and that the bulls are back in MSFT.
The RSI has formed a reverse head and shoulder like structure which is suggesting that the RSI could rise soon and that buyers could be returning in MSFT soon.
MSFT has a strong support level at $328, thus any long entries should be taken only above the support zone by setting a stop-loss below the support zone.
MSFT has formed a strong bullish candle on Friday, this is suggesting that a new rally could start soon with high momentum.
Investors can aim towards a new all-time high, however, they must be cautious by setting a stop-loss.
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