How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 492.01

+1.3%

Nov 28 9:30 AM EST

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To: taxman who wrote (18426)	3/22/1999 2:34:00 PM
From: Gerald Walls	Read Replies (1) of 74651

what does a cup-and-handle formation have to do with the price? Theory is that it provides a stronger base. If the stock pauses in a tight range, like the handle would be, then when it finally breaks out the move will be stronger and in the case of a pull back it would be less likely to break the support as it's stronger since more shares traded there. Why? Probably psychological more than anything else. That why I think technical analysis seems to work, because it's a study of market participant group psychology. One thing for sure, though, is that the cup-and-handle formation attracts attention and that, it would seem to me, increases demand on a breakout.

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