Markets Looking To Cautiously Long Microsoft Following Giant LinkedIn Acquisition

On Monday, the software giant Microsoft announced a successful bid to acquire the professional social networking site LinkedIn for $26.2 billion in cash. This takeover will give Microsoft access to 433 million LinkedIn members, which in turn would contribute to reviving the company’s Internet products and services business. However, in the short term, investors are likely to be concerned over such a large outlay of cash for an online networking site, which has had a knock – on effect on shares of Microsoft thus far. On the hourly chart, the parabolic SAR is encouraging a short position is encouraged as the price has fallen below the parabolics band. Yet, ADX (14) has plunged wildly to 34.7125, indicating that the downtrend is becoming weaker. The price is anticipated to correct a little before beginning an up-move.

Trade suggestion

Buy limit at 49.91, Take profit at 50.31, Stop loss at 49.82

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