MSFT Poised for Next Bullish Breakout?

On Thursday, we looked at a Daily Price Chart of  //links.tradewins.com/a/126/click/10235191/743397265/_ec7cc86ee43cce5b657287ae720bb1326e8cc9f0/ca5eb974e586c9bd7fdc8795d79e2652570eaccf April 1st, 2024 MSFT Poised for Next Bullish Breakout? Dear Reader, On Thursday, we looked at a Daily Price Chart of [Target Corp.](, noting that TGT’s 50-Day EMA is trading above the 100-Day EMA signaling a ‘Buy’. For today’s Trade of the Day e-letter we will be looking at a monthly chart for Microsoft Corp. stock symbol: MSFT. Before breaking down MSFT’s monthly chart let’s first review what products and services the company offers. Microsoft Corporation is one of the largest broad-based technology providers in the world. The company dominates the PC software market with more than 80% of the market share for operating systems. The company’s Microsoft 365 application suite is one of the most popular productivity software globally. It is also now one of the two public cloud providers that can deliver a wide variety of infrastructure-as-a-service and platform-as-a-service solutions at scale.  Now, let’s begin to break down the monthly chart for MSFT stock. Below is a 10-Month Simple Moving Average chart for Microsoft Corp. Buy MSFT Stock As the chart shows, in March 2023, the MSFT 1-Month Price, crossed above the 10-Month simple moving average (SMA). This crossover indicated the buying pressure for MSFT stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish uptrend. Now, as you can see, the 1-Month Price is still above the 10-Month SMA. That means the bullish trend is still in play! As long as the 1-Month price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs and should be purchased. Our initial price target for MSFT is 435.00 per share. Click here to sign up now and start your journey to trading insights with the [Weekly Workshop Video!]( Profit if MSFT is Up, Down or Flat Now, since MSFT’s 1-Month Price is currently trading above the 10-Month SMA and will likely rally from here, let’s use the Hughes Optioneering calculator to look at the potential returns for a MSFT call option spread. The Call Option Spread Calculator will calculate the profit/loss potential for a call option spread based on the price change of the underlying stock/ETF at option expiration in this example from a 7.5% increase to a 7.5% decrease in MSFT stock at option expiration. The goal of this example is to demonstrate the ‘built in’ profit potential for option spreads and the ability of spreads to profit if the underlying stock is up, down or flat at option expiration. Out of fairness to our paid option service subscribers we don’t list the option strike prices used in the profit/loss calculation. The prices and returns represented below were calculated based on the current stock and option pricing for MSFT on 4/1/2024 before commissions. Built in Profit Potential For this option spread, the calculator analysis below reveals the cost of the spread is $332 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if MSFT stock is flat or up at all at expiration the spread will realize a 50.6% return (circled). And if MSFT stock decreases 7.5% at option expiration, the option spread would make a 50.6% return (circled). Due to option pricing characteristics, this option spread has a ‘built in’ 50.6% profit potential when the trade was identified*. Option spread trades can result in a higher percentage of winning trades compared to a directional option trade if you can profit when the underlying stock/ETF is up, down or flat. A higher percentage of winning trades can give you the discipline needed to become a successful trader. The Hughes Optioneering Team is here to help you identify profit opportunities just like this one. Interested in accessing the Optioneering Calculators? Join one of Chuck’s Trading Services for unlimited access! The Optioneering Team has option calculators for six different option strategies that allow you to calculate the profit potential for an option trade before you take the trade. Trade High Priced Stocks for $350 With Less Risk One of the big advantages to trading option spreads is that spreads allow you to trade high price stocks like Amazon, Google, or Netflix for as little as $350. With an option spread you can control 100 shares of Netflix for $350. If you were to purchase 100 shares of Netflix at current prices it would cost about $61,000. With the stock purchase you are risking $61,000 but with a Netflix option spread that costs $350 your maximum risk is $350 so your dollar risk is lower with option spreads compared to stock purchases. Short-Term Program from Chuck! Chuck Hughes has just launched his exciting new trading service program, Lightning Trade Alerts. This new service focuses on low-cost & short-term options trade. Members will receive hand-picked options trades from the 10-Time Trading Champion, Chuck Hughes. Call our team at 1-866-661-5664 or 1-310-647-5664 to join or [CLICK HERE]( to schedule a call! Wishing You the Best in Investing Success, Chuck Hughes Editor, Trade of the Day Have any questions? Email us at [dailytrade@chuckstod.com]( *Trading incurs risk and some people lose money trading.  --------------------------------------------------------------- See Related Articles [Target Zeroed in on New Highs]( [IBP Stock on Fire: How to Play it?]( [Insurance ‘Buy’: WRB Moving Higher]( --------------------------------------------------------------- [TradeWins Logo](  © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( If you didn't create an account using this email address, please ignore this email or unsubscribe using the link below. To ensure delivery of this email to your inbox and to enable images to load in future mailings, please add [todaystrade@chuckstod.com]( to your e-mail address book or safe senders list. DISCLAIMER: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by Legacy Publishing LLC. 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