Is MSFT ready to play catch-up?
The markets are in “buy the dip” mode post-election – we’re seeing extended moves across tech, particularly in names like Apple hitting new highs at +3 ATR.
When we get this extended, it’s crucial to find names that haven’t yet made their move, which is exactly what we’re seeing in Microsoft, which has actually underperformed the S&P 500 year-to-date.
Why Microsoft?
- Triple A+ squeeze signals on both daily and weekly timeframes
- Not extended like its tech peers (particularly Apple)
- Clean technical pattern with clear risk levels
- Strong underlying momentum
The Setup:
- Looking to get long between $425-$430
- Using January 2025 $430 calls for maximum time value
- Initial target at the 0.618 retracement around $435
- Extended target at new all-time highs above $468
For options traders, I’m focusing on the January 2025 $430 calls. While these aren’t cheap options, we’ve got significant time for this squeeze setup to play out, and the longer-dated expiration gives us breathing room as the pattern develops.
For my entire take on this MSFT setup, click the image below and watch my video.
YOUR ACTION PLAN
I’ll be looking to accumulate MSFT in this range and work it up to our targets.
The combination of the squeeze setup, reasonable entry point, and clear upside targets makes this an attractive risk/reward setup in a name that isn’t yet stretched to the upside.
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