(Yesterday) RBC Capital Markets downgraded Microsoft (MSFT â€“ NASDAQ) from â€śOutperformâ€ť to â€śSector Performâ€ť because they feel that most all of any Windows 8 profits are already cooked into MSFTâ€™s share price.
But, this latest snub is the least of Microsoftâ€™s concerns.
When we look at MSFTâ€™s technical chart, we see a 5x Sell Signal Stack:
2, 3: Last week, MSFT plunged through both the 50-day average (marked in red) and the 200-day average (marked in blue).
4, 5: The power of these downside signals was confirmed by a Sellers Cross on MACD and a marked A/D shift from accumulation to distribution.
Bottarelli Research Tip: The last time MSFT showed this Signal Stack was April 16, 2012. By June 4, MSFT had peeled away $4.33 for a loss of some 13.34%.
– Bottarelli Research
Source: Bottarelli Research