Stocks quoted in this article:
A newswire reported this morning that storage-drive manufacturer Seagate Technology (SEG – 74-3/8)is in a supply pact with Microsoft (MSFT – 70-3/16). The company will reportedly provide hard drives for MSFT's Xbox video game system, which is due in stores in fall 2001.
SEG has been steeped in a long-term trend higher for the past year, nearly tripling in value since its October 1999 low. This consolidation higher has been contained at the equity's ascending 10-month moving average. From a shorter-term perspective, SEG gapped above its 10-day and 20-day moving averages on Friday. These short-term trendlines subsequently exhibited a bullish crossover.
In early-morning trading, both SEG and MSFT are exhibiting minor gains.