Red lines- bullish channel
Green line- bearish RSI divergence
MSFT stock price is trading inside the red upward sloping channel. Trend remains bullish as price continues making higher highs and higher lows. Today MSFT corp announces its quarterly financial results. Technically we have no reversal signal, but only a warning that should not be ignored. Although price remains inside the bullish channel making higher highs, the RSI is making lower highs providing us with bearish divergence warnings. Price is vulnerable to a deep pull back. Support by the channel is found around $335 and next at the recent low of $327. A break below these two levels would be a trend reversal signal. Traders need to be cautious.
