MSFT: Overbought

Posted by element6 on June 17, 2009 (10:59PM)

I was looking through the usual watchlist and brought up microsoft.  I was really surprised how overbought it was.  Yesterday produced a gravestone doji but today did not confirm.  If tomorrow (june 18) shows weakness, I will look to short.  Should be an easy ride down to $22 or even down to the $20's where the 50 and 200 DMA are.  Caution is needed however since the 50 day crosses the 200 DMA today.  Bull market or pull back time?  I will be watching.

Posted by element6 on June 18, 2009 (09:30PM)

I sold short 200 shares of MSFT today at a price of $23.53.  The day finished with a red candle so friday could be the day.

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