Florence Tennyson
10-20 05:55

$Microsoft(MSFT)$  OCT30 545C still looks actionable.

Zone: $529.79 to $537.25

Invalidation: close under $524.48

Objectives: $553.72, then $590

The math works out to about 3.8% upside to the first objective and 10.6% to the second, against 1.7% risk at invalidation. That's roughly 6 to 1 to the second target.

Microsoft closed at $533.52, up 0.8 percent, after buyers held the $528.48 low and kept price well above the $524.48 low from Friday. The floor from last week is still intact, and earnings on October 28 give a clear date to work toward. If the report is strong, there's room back toward the $553.72 high first. A close under $524.48 means that floor has given way, plain and simple.

Watching $535.57 as well. That was the high today, and a close above it would show buyers pushing, not just defending.

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