Expert: No Reason To Be Long On Microsoft's Weekly Chart

J.C. Parets, Founder of Eagle Bay Capital, commented on Microsoft Corporation (NASDAQ: MSFT) in his firm's April 5 report.

Parets felt that Microsoft "had been one of the strongest charts in the Dow" as it continued making new highs.

On the above weekly chart, however, relative strength had broken down and Parets said there "is no reason to be long structurally below this broken uptrend line and [he] would still look to the daily timeframe for a more tactical approach."

Related Link: Check out the full report here.

On the daily chart below, Parets noted that the stock was "no longer above the uptrend line from 2014 and highs from September."

Parets did not want to short the stock as of yet, however, based on the "upward sloping 200 day moving average and structural setup," he wanted "to be looking to fade strength, especially toward 44.50-45."

Microsoft Corporation recently traded at $41.53, down 0.04 percent.