Chart of the Day: This 'Freight Train' Is at the Top of an Elite Class
The best-performing Magnificent Seven name has quietly risen to all-time highs.
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While many traders/investors have been obsessed with names such as Nvidia NVDA, Apple AAPL and Tesla TSLA, it is Microsoft MSFT that sits atop the best performers in the select group of Magnificent 7 names. The stock last month bolted higher and exceeded those all-time highs from back in December (shown with a horizontal line), and that did not stop this freight train from running further.
Following strong earnings in late April we noted the powerful move that happened on very strong turnover, which often leads to more upside. The amazing run of Microsoft since then (up 14% in seven weeks) has been on strong volume and very heavy momentum.
The ADX is peaking at 55 or so, showing incredible efficiency on the stock price (meaning, each day higher expresses the perfection of the price action), which has not had a down session in several days. That is power.
But as Microsoft continues higher there is the chance of a sharp corrective move. As it is, the stock is far apart from the moving averages and could even correct 10% and not disturb the uptrend; that might just rattle the bulls a bit.
No question, the power in this stock is seen in the price chart with blue candles for the past seven weeks. A pullback might be a spot to add more shares, so keep your eyes peeled.
We like Microsoft in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long MSFT, NVDA and AAPL.
