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Trader's Notebook: Microsoft Targets New Swing Highs

Plus, Goldman Sachs shows weakness and Michael Kors offers hope.
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I suspect most of you are well aware of Microsoft's (MSFT) powerfully bullish influence on the S&P 500 over the past month. But what about the fact that the stock is close to breaking higher once again? MSFT has been trading between roughly $52.50 and $54.40 for the past eight session. And based on Tuesday's strong close, bulls now appear to be targeting new swing highs. An intraday push above the Oct. 27 $54.37 high should serve to trigger interest among day-timeframe-momentum traders.

For the third time since early September, Goldman Sachs (GS) has encountered selling near $191.75. A push above Tuesday's $191.87 intraday high may be sufficient to trigger a playable opportunity for day-timeframe-momentum-oriented traders. One additional thing to note is the 200-day simple moving average currently sits a bit beneath $195. That area should be considered a near-term obstacle.

If it's beaten down retailers you like, consider pulling a chart of Michael Kors (KORS). The stock, which currently sits around 7% from 52-week lows, is down more than 47% on a year-to-date basis. And while the stock is still relatively horrid on all timeframes, it did close above a five-day and eight-day exponential moving average for the first time since early October. Offering further hope to any bullish bottom feeders is a multi-month bullish divergence in the Relative Strength Index (RSI). The bottom line is the stock has room to run toward its multi-month downtrend line near $43, provided it doesn't immediately reverse course and close back under $39.

Any trading or volume profile related questions can be posted in the comments section below, emailed to me at parkcityyeti@gmail.com or posted to my twitter feed @ByrneRWS

At the time of publication, Byrne had no positions in the stocks mentioned.