Microsoft, Corp.

(MSFT)
From its peak in April at $31.58 this year, Microsoft has seen itself tumbling to as low as $22.73 by the
middle of 2010. Since then, the software giant slowly clawing its way up, trailing its long-time rival Apple
Inc. Although the pace has been slow, by Thursday MSFT has reached $27.99, another push higher from
a series of consecutive higher lows. Whether the software giant able to resume its push higher remains
to be seen, but so far the outlook looks promising.

Of course, the most worrisome would be the RSI, which already entering the OVERBOUGHT area at
$71.38. With the price has been rising while the RSI has been unable to carve up fresh higher high, there
is a risk of a bearish divergence. However, MACD is supportive as it maintains its position at the
POSITIVE area. EMAs also bring indication that there are more things to come.

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Statistics

15.00%

10.00%

5.00%

0.00%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00% 09 10 10 10 10 10 10 10 10 10 10 10 10

-10.00%

-15.00%

-20.00%

0.00%
YTD 12-Mos
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
-6.00%
-7.00%
-8.00%
-9.00%

MSFT has been struggling this year to hold off bearish pressure. Yet, up to Thursday the stock’s YTD
performance still produce 8.17% of losses. Its December gains however, has reached 10.81%, the fourth
best stock out of 30 Dow stocks.

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The strategy

SUPPORTS LAST RESISTANCES

12/16/2010

25.25 26.00 26.25 26.76 27.66 27.99 28.87 29.49 31.58 33.72 36.07

Despite its negative return this year, MSFT is the fourth strongest stock this December. The strategy
then, is to initiate LONGS with focus on the attainment of $28.87. Key support will be at the lower
$26.00, which could be pivotal.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any
securities. This report has been prepared based on sources believed to be reliable, but there is no
assurance or guarantee regarding its completeness & and accuracy. The author accepts no responsibility
or liability arising from any use of the report.

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