Microsoft to 58 Was Not a Typo, But it Was Wrong – Too Low
- Posted by Greg Harmon
- on March 1st, 2012
Wednesday night I posted a monthly chart of Microsoft, $MSFT, showing it a break out of a wedge pattern and put a target of $58 on in from the pattern break. Comment came pouring in asking if that level was a mistake. Well yes it was. In fact this chart is a lot more bullish than that on this timeframe. The chart is below. The wide end of the wedge (in blue) touches both 47 and 17 making for a $30 expected price move added to the breakout level at 29 gives the $58 price target. As this was a 12 year wedge you can not expect that it will happen in a few months but over time, maybe
years. But looking at the full picture suggests that may be the start of a bigger move higher. The 6 year run up from $2 to $37 that preceded the long consolidation (purple channel) would indicate that a move higher to 67 over the next 6 years from symmetry. Do you have room in your portfolio for a long term holding that that could return 13% per year over the next 6 years and pays a 2.5% dividend?
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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