Microsoft (MSFT) – Get the Microsoft Corporation Report Thursday helped lead the market higher, up more than 2% on the day.
Considering its size – a market cap of $ 1.8 trillion – this gives the Nasdaq a boost, although technology in general is doing well.
The company’s new contract with the Pentagon is helping to drive up the stock.
Specifically, the contract could be worth nearly $ 22 billion over the next decade and calls for the Redmond, Washington tech giant to build AR headsets.
The news also comes after a recent report that Microsoft is trying to buy the Discord streaming platform for $ 10 billion.
The Bulls are hoping the news with the Pentagon will be enough to spark a breakout at Microsoft. Let’s look at the graphics.
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In February, Microsoft fell from the $ 240 level. Since then, the stock has closed that gap, but this area has been resistance over the past month.
Although he has reached this level several times since the gap fell, he has not been able to break it.
The stock is expected to close above that mark on Thursday, so we could be looking at a powerful breakout of this mega-cap tech stock.
Not only is Microsoft erasing a key level on the charts, it also gives the bulls daily, weekly and monthly rotation by erasing Wednesday’s high, last week’s high, and March’s high.
It’s a hell of a rotation and it gives the bulls real potential for April and the second quarter.
Over $ 240 puts the $ 246 level on the line, with a 52-week high at $ 246.13. Above that metric, the two-fold long-term reach extension at stake near $ 249.
If Microsoft wipes out $ 250, then the 161.8% extension is on the table near $ 256. Ultimately, long-term bulls may look for a possible move to the 261.8% extension to close to $ 285.
On the downside, a move below the 50-day moving average should prompt investors to be cautious. Below $ 233 and the stock may fall further, potentially testing in the $ 225 area.
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