Microsoft to 58 Was Not a Typo, But it Was Wrong – Too Low

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. Comments came pouring in asking if that level was a mistake. Well yes it was. In fact thise 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

Microsoft, $MSFT

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.

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