On November 9th an alert went out on Microsoft (MSFT) when I suggested a contingent buy if the stock moved up and closed over the 27.50 resistance area. The stock never closed over that price after the alert went out, and it was a good thing we set it up as a contingent buy, because if we had bought the stock when it was trading at 27.16, we would have lost money.
Yesterday the stock closed over the 20-day moving average, leaving a Doji Candle on the charts. The interesting thing about this particular doji is that the low touched the 20-day moving average and bounced. This gives us a support level at 25.48 that we can use as a stop loss area should the stock move against our position.
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