Technical Analysis.docx

TECHNICAL ANALYSIS

RELATIVE STRENGTH INDEX

MOVING AVERAGE There are many factors at play when looking to successfully conquer the stock market. New investors have the tendency to become overwhelmed at the prospect of putting their hard earned money to work. If the individual investor decides that they are going to be managing their own money, they may be looking for a proper place to start. Investors might want to start by clearly defining their own goals. Creating realistic and attainable goals can help get the investor walking down the right path. As many experienced investors know, setting goals and staying on track can be a big help for navigating the markets. As traders scan the equity market, they may be using Simple Moving Averages to help figure out where a stock is headed. Moving averages help predict the price direction of MSFT stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $111.18 is below the price of $117.52

Microsoft Moving Average Convergence Divergence or MACD The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Microsoft MACD indicator can be used to identify bullish and bearish trends for the stock.

Microsoft Relative Strength Index This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . The relative strength index of MSFT stock is 70.9.