MSFT – Microsoft Corporation – The multinational computer technology corporation's Point & Figure chart shows prices bouncing off main bullish support line at $19.25 heading up. From October 07 High Pole at $37.50 prices declined sharply reaching $33.25 before starting to trade sideways within the range $32.75/$36.50. The overall outlook changed in January 08 when the movement break through the main bullish support line at $33.50 switching to bearish mode. A piecing Long Tail Down pattern developed at the end of January 08 projecting a downside target at $14.00. For the following 6 months prices traded sideways again with base at $27.00 until June 08 double bottom breakout at $26.75 which signaled the opening of a new wave of contraction. A pattern of lower highs and lower lows reached $17.50 in November 08 where prices found support. The reaction bounced off $21.25 resistance twice before the February 09 final sell off in the area of $14.90 which seems to be the turning point. The main bearish resistance line penetration at $18.75 confirmed by the double top breakout unveiled the trend reversal. Lately the uptrend violated a key resistance level at $20.00 adding more weight to the bullish evidence. The double top in the area $21.00, a former support level during decline, pushed prices back to the main bullish support line where the uptrend resumed. Relative Strength vs the market is positive predicting an outperformance for the near future. Stay long and increase at triple top breakout at $21.25 with targets set at $24.80 and $26.60. On the downside close all long positions at penetration of the main support line now crossing at $19.25 with possible contraction to $13.75.
SLB – Schlumberger N.V. - Shares of the leading oilfield services provider failed to break through main bearish resistance line at $58.50 and will now retrace back towards $46.50 area before setting up a new penetration attempt. April 06 peak at $133.00 resolved into a devastating Long Tail Down pattern which breaking through the main bullish support line at $117.00 turned the trend from bullish to bearish. The pattern halved the stock value reaching $61.00 before starting a 12 months sideways trading within the range $54.00/$69.00. March 07 triple top breakout signaled the start of a corrective up move which pulled back to $114.00, a former support level during uptrend, before retracing back to $73.00. A new up move failed to break through previous peak bouncing off $111.00 area and developing a pattern of lower highs. Breaching of the main support line at $96.00 confirmed by the triple bottom at $93.00 opened wide for a new wave of decline. Prices retraced sharply to $39.00 where support was found. The triple bottom at $36.00 seems developing into a reversal point. Lately prices pushed back up failing the first attempt to break through the main bearish resistance line at $58.50 and we are now expecting them to weaken further reaching $46.50 before putting up a more convincing reaction. Relative Strength vs the market is still positive making it an outperformer. Open long positions only at violation of the main bearish resistance line now crossing at $57.50 and increase at double top breakout at $59.00 with first target set at $66.00. On the downside close all longs with possible contraction to $46.50.
HSIC – Henry Schein, Inc. – Worldwide distributor of medical, dental and veterinary supplies, Henry Schein Inc. saw its shares turning back down after moving up from main bearish resistance line penetration. From September 07 to February 08 prices moved within a trading range with base at $55.50 and resistance at $63.00 developing a distribution pattern. Penetration of the main bullish support line at $58.50 confirmed by the double bottom breakout at $58.00 changed the overall outlook to bearish. The first wave of decline reached $49.00 before generating a corrective up move which pulled prices back to $60.00. The September 08 double bottom breakout at $53.00 signaled the starting point for another wave of contraction. Two Long Tail Down patterns to $41.00 first and $32.50 pushed prices to reach the lows where a triple bottom developed. After trading sideways within the range $36.50/$39.50 a Bear Trap pattern developed in February 09 with a multiple bottom breakout at $36.00 which reversing back up break through the main bearish resistance line at $39.00 switched the trend to bullish outlook. Prices lifted up lately reaching $46.50 where a pause in the uptrend is expected. Relative Strength vs the market is positive adding more weight to the bullish evidence. Stay long and increase at double top breakout at $47.00 with first target set at $49.00 and in the medium term at $57.50. On the downside lighten at double bottom breakout at $43.50 and close all longs at violation of the main bullish support line now crossing at $39.50 with possible contraction down to $34.00.