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Tuesday, March 20, 2012

MSFT divergence

Interesting MSFT action today. After its huge run, the rally 14 SMA support is breaking. Today MSFT looks to be breaking from that trend.

Its easing from its over bought condition, but it has some consolidating to do before it is oversold. (The consolidation could be near the 50SMA, but I am not sure right now.)

Even though the recent rally was telegraphed, I have not been a fan of MSFT's reaction culture.  The culture makes the stock an interesting dividend play, but until they play offense to truly compete with Apple, they will continue to deserve a low multiple.

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