XSW (Software & Services Sector ETF) offers an objective long entry here at support with several key software stocks, including MSFT, also at support. Daily chart with price targets & maximum suggested stop (if targeting T2) below.
XSW daily Feb 3rd
A long position in XSW could also be taken as an indirect hedge to the current Active Short Swing Trade on QQQ, as there has recently been an unprecedented divergence between the hardware & software sub-sectors with the larger technology sector (and tech-heavy Nasdaq 100). Also, note that the primary uptrend line generates off the March 18, 2020, major (COVID) reaction low (cut off on the left of the chart above) & even previous major reaction lows going back to the inception of this ETF in 2011.
As always, pass if this trade idea doesn’t mesh with your trading style, risk-tolerance, and/or outlook for the sector. I will cover the software (and hardware) stocks in more detail in an upcoming video (although I did recently highlight MSFT having dropped to its comparable primary uptrend line).