Tuesday, December 3, 2024

♟ MSFT: Prime Squeeze Setup While Apple Extends

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"Microsoft's technical setup with triple A+ squeeze presents a compelling tactical opportunity with clear upside targets."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

The markets are in "buy the dip" mode post-election - we're seeing extended moves across tech, particularly in names like Apple hitting new highs at +3 ATR.

When we get this extended, it's crucial to find names that haven't yet made their move, which is exactly what we're seeing in Microsoft, which has actually underperformed the S&P 500 year-to-date.

Microsoft (MSFT)
(Click to enlarge)

Why Microsoft?

  • Triple A+ squeeze signals on both daily and weekly timeframes
  • Not extended like its tech peers (particularly Apple)
  • Clean technical pattern with clear risk levels
  • Strong underlying momentum

The Setup:

  • Looking to get long between $425-$430
  • Using January 2025 $430 calls for maximum time value
  • Initial target at the 0.618 retracement around $435
  • Extended target at new all-time highs above $468

For options traders, I'm focusing on the January 2025 $430 calls. While these aren't cheap options, we've got significant time for this squeeze setup to play out, and the longer-dated expiration gives us breathing room as the pattern develops.

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Who: You and Pro Trader Nate Bear
What: Nate Bear's Sector Strike LIVE Mission Briefing
Where: Online
When: Wednesday, December 4th @ 2 P.M. (ET)
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For my entire take on this MSFT setup, click the image below and watch my video.

A Prime Squeeze on MSFT
 
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YOUR ACTION PLAN

I'll be looking to accumulate MSFT in this range and work it up to our targets.

The combination of the squeeze setup, reasonable entry point, and clear upside targets makes this an attractive risk/reward setup in a name that isn't yet stretched to the upside.

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This Microsoft setup is exactly the kind of opportunity we'll be targeting, but multiplied across the most promising sectors in the market.

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