Microsoft: The Same Kiss-Of-Death Formation As Nvidia (Technical Analysis)

Summary:

  • Microsoft is showing bearish technical signals, while sitting at its highest valuation since the 2000 Dotcom bubble peak.
  • The Ease-of-Movement indicator is highlighting a substantial drop in buying volumes during July, with share selling steadily increasing.
  • I rate shares a Sell with a 12-month target price of $300, given an overvaluation extreme and potential economic challenges.

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I became the fan favorite of NVIDIA (NVDA) perma-bulls last week here (punching bag actually), when I mentioned the stock had succumbed to a vacuum of buying interest. The logical explanation is net accumulation volumes


Analyst’s Disclosure: I/we have a beneficial short position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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