by Shane Ormond
On Feb 20, 2020
Shares of Groupon and Blue Apron tanked yesterday after their quarterly reports reignited skepticism about the companies’ “unconventional” business models. (And by “unconventional” I mean “doesn’t work.”)
Blue apron, groupon, e-trade, morgan Stanley
Blue apron, groupon
On Friday, we looked at a Keltner Channel chart of PNC Financial Services Group, Inc. and noted that it was on a pullback from being overbought.
Today’s chart is for Microsoft Corp. (NYSE: MSFT).
Now, the Daily Price Chart below shows that MSFT has been making a series of 52-Week Highs since March.
When a stock hits a 52-Week High, you know it is in a very powerful up trend.
Stocks in a price uptrend, as we know, do not advance in a straight line — there are always price retracements along the way.
MSFT experienced periodic price pullbacks during its strong advance since March.
Traders can get a lower risk entry point after a 3 to 5% price retracement as the stock normally resumes its price up trend after such retracements.
We’ll be sure to continue following Microsoft as it climbs to new heights, and watching for price retracements.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On November 25th, we highlighted SPDR S&P Aerospace & Defense ETF (NYSE: XAR), noting that XAR had been on a bullish run ever since it’s 1-Month moving-average had crossed above the 10-Month SMA in January 2019.
If you happened to have purchased XAR shares on that day, you’d be up 2.46%.
But… if you had purchased the right option contract, you would be up 43.96% in less than two months’ time!
That’s the power of options.
Editor, Chart Of The Day