Microsoft stock set a new 52-week high Thursday before pulling back slightly, but does that signal technology gains ahead as Google and QQQ also closed higher?
Carter Worth , chief market technician for Oppenheimer, urged caution on Microsoft’s strength.
“If you put that in context, it’s added $50 billion in market cap in five, six weeks. There are only 45 or 50 companies that are worth that much, and Microsoft just tacked that on in a very steep way,” he said. “Basically it’s time to be riding calls, trimming, doing something. It’s a big move.”
Looking at the stock charts, Worth said Microsoft would likely trade closer to the 52-week high for the next two or three months to set up for a breakout.
“But the first approach to a past top is invariably a better sale,” he said on “Fast Money.”
Microsoft shares hit $30.17 before retreating to close at $29.95, up 0.2 percent.
Shelter Harbor Capital’s Brian Kelly said he saw possibility for the stock but was “not sure they have the management to actually execute the plan,” he said, adding that he needed to see evidence from Microsoft CEO Steve Ballmer.Page 1 of 4 | Next Page