"With stacked weekly EMAs and dual squeeze signals forming, MSFT is coiling for what could be an explosive move through all-time highs."

“With stacked weekly EMAs and dual squeeze signals forming, MSFT is coiling for what could be an explosive move through all-time highs.”

By Nathan Bear

December 3, 2024

When multiple timeframe squeeze signals align near historical resistance levels, experienced traders know to pay attention.

That’s exactly what we’re seeing in Microsoft (MSFT) right now, and the technical setup is nothing short of magnificent.

Power of Multiple Timeframes

The current setup in MSFT is particularly compelling because we’re seeing squeeze signals emerge on both daily and weekly charts – a rare occurrence that often precedes significant moves.

Technical Framework:

Building Pressure at the Top

MSFT’s price action resembles a coiled spring right now. The stock keeps pushing against $468.35 while volatility contracts – a classic pattern that often leads to explosive moves.

Testing critical resistance near 52-week high of $468.35
Compression forming just below this key level
Strong support structure from stacked weekly EMAs
Low volatility suggesting major move ahead

The Weekly Foundation

The weekly chart tells a powerful story:

The longer-term picture shows steady, stair-step price movement upward – exactly what we want to see in a healthy trend. Big players appear to be quietly building positions while most traders aren’t paying attention.

Perfect EMA stack showing sustained upward momentum
Low compression squeeze forming – rare on this timeframe
Volume profile suggesting quiet accumulation
Key support levels clearly defined below

Daily Confirmation

The short-term chart reinforces our weekly story. The stock is tightening into a narrow trading range near its highs, while trading volume shows large investors are likely positioning for the next move.

This type of quiet period often comes right before a significant price breakout.

Adding to the weekly setup:

Fresh squeeze signal triggering on daily timeframe
Price consolidation near resistance showing strength
Decreasing volatility pointing to imminent break
Volume patterns suggesting institutional interest

Business Backdrop

While underperforming the S&P 500 this year, Microsoft’s fundamental strength remains undeniable with continued cloud growth and AI integration. However, it’s the technical setup that makes this opportunity particularly timely.