Here are several buy levels to consider for both Microsoft and Nike

The article details a disciplined investment strategy for acquiring fundamentally sound companies during market volatility, leveraging technical analysis like moving averages and price action to identify optimal entry points. The author's trust recently added Corning, Honeywell, and Meta Platforms. Specific buy levels are outlined for Microsoft, with current support at $495 and a deeper level at $465 (representing ~29x forward earnings), and for Nike, which is considered attractive around $65 despite bearish technicals, with plans to accumulate further at $60 and mid-$50s as its turnaround progresses.

Analysis

The analysis outlines a disciplined investment strategy focused on acquiring fundamentally strong companies during sentiment-driven market declines, leveraging technical analysis for optimal entry points. While acknowledging that market sentiment can lead to irrational price action, the strategy prioritizes underlying business quality, using indicators like moving averages and price action interpretation to time purchases. Recent portfolio additions include Corning, Honeywell, and Meta Platforms, reflecting this approach.

For Microsoft (MSFT), the analysis identifies a current buy level around $495, citing recent support at this price point, with the stock trading approximately 6.5% below its all-time highs. A deeper support level is noted at $465, which aligns with the 200-day moving average and an old high from July 2024, representing a ~15% discount from highs and an attractive forward P/E of approximately 29x.

Nike (NKE) is presented as attractive around $65, driven by improving fundamentals and an anticipated earnings rebound by May 2026 as management executes its turnaround plan. Despite a bearish technical setup, including a looming "death cross" and trading below both 50-day and 200-day moving averages, the strategy suggests accumulating shares. Further buy levels are identified at $60 and the mid-$50s, with the latter representing a highly attractive entry point tied to historical lows.

This approach emphasizes combining fundamental conviction with technical timing, particularly in volatile markets. The focus on "price action" as an indicator of investor sentiment and underlying strength provides additional context for making tactical decisions within a long-term investment framework.

Key Decisions for Investors

• Investors should consider initiating or adding to Microsoft (MSFT) positions around the $495 support level, with a strategic accumulation target at $465, which offers a more attractive valuation at approximately 29x forward earnings.
• For Nike (NKE), despite bearish technicals, long-term investors focused on the fundamental turnaround should consider accumulating shares around $65, and strategically add at lower levels like $60 and the mid-$50s.
• Implement a disciplined investment strategy that combines strong fundamental conviction with technical analysis, utilizing moving averages and price action, to identify optimal entry points during market volatility.