Microsoft is a technology company that develops and supports software, services, devices, and solutions. Co. provides a range of services, including cloud-based solutions that provide software, services, platforms, content, solution support and consulting services. Co. also delivers relevant online advertising. Co.'s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. Co. also designs and sells devices, including personal computers, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.
When researching a stock like Microsoft, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from MSFT Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for MSFT stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the MSFT 200 day moving average ("MSFT 200 DMA"), while one of the most popular "shorter look-backs" is the MSFT 50 day moving average ("MSFT 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Microsoft. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the MSFT 200 DMA and the MSFT 50 DMA, we get a moving average convergence divergence indicator ("MSFT MACD"). The MSFT MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
Free MSFT Email Alerts:
Video: Technical Analysis