MSFT went through a double top in early 2010. A move of a little over the same height followed, which ended with the stock at 22.50 in late June 2010. This is now the lowest support line. It was also the start of a new leg up, whose trendline was broken in early March 2010. Incidentally, the high of this rally had the same height of the previous double top and consequent down move. Now it's in a down trend, but the recent moves have happened on decreasing volume. The 23.50 support would be the next to break on the way down, while the down trendline would be the line to cross for a bullish breakout.
Now, let's see the daily.
The July 2010 bottom was preceded by a bullish divergence between price and MACD (2). Also, RSI was showing a divergence. The down trendline was broken in mid-July (3). The new up trend (4) continued until March 2011 (6). Its end was preceded by a bearish divergence (5) between price and the three indicators in this chart: MACD, RSI and Slow Stochastics. The top of January 2011 became the start of a new down trend (7), which is still in effect. But since last March, MACD and RSI have been showing a divergence (8) with the price movement. Starting in May, Slow Stochastics confirmed this divergence as well.
Support is at 23.50, resistance is at 25.00. A breakout above the down trendline may represent the start of a new leg up.
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