The monthly chart breakout and subsequent backtest (see this post from December 2012) to the breakout point on in Microsoft proved true for bulls, as the stock has raced back up to its 2007 highs in the mid-$30’s. Perhaps capital is rotating out of the utilities, REITs, and staples, but still wants yield. Perhaps, MSFT was just due to move. Either way, it is happening and Mister Softee is dramatically outperforming the market here.
The issue now becomes whether the stock is just getting started. The most likely scenario is that these prior 2007 highs serve as initial resistance or at least a source of turbulence. The key will likely be turning the low-$30’s–Around $32.50 or so–into newfound support for a major higher low.
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After sold at 34ish, waiting re-enter
which doesn’t come in but keep going up. Impressive! I look forward to your next update. Thanks Chess as always.