Microsoft is going down

16 Okt 2013

Here we can see a downwards channel that began in July. The price is currently at the upper channel line and just over a fib resistance level. I suppose the stock will drop from its current price until it reaches the lower channel line. Recently as the price would up, the volume would continue to go down. Also the RSI is reaching 70 which indicates that the stock is overbought. This is a clear downtrend and I expect it do follow the law of inertia, continue to go down.