What does Microsoft’s stock chart say? A technical analysis – Microsoft (MSFT)
Microsoft Corp. (NASDAQ:MSFT) Stocks are trading lower on Tuesday as they retrace towards support areas on the chart. The price is near the 50-day moving average and could see a bounce there or near the $305 level that previously served as resistance.
Senator John Hickenlooper recently sold a series of stocks, including shares of Microsoft. The total sale of shares is between the value of $250,000 and $500,000.
Microsoft was down 4.23% at $325.04 at press time.
See also: This senator sold his FAANG shares in October and November before the critical Fed meeting in December
Microsoft Daily Chart Analysis
- Stocks recently broke out of what traders would call an ascending triangle pattern and appear to be consolidating above the resistance zone. The resistance was previously found near the $305 level, but this area may now turn into support.
- The stock is trading above the 50-day moving average (green) and the 200-day moving average (blue). This indicates bullish sentiment, and each of these moving averages may hold as a support zone going forward.
- The Relative Strength Index (RSI) has declined in recent months and now sits at 45 on the indicator. This shows that the stock is seeing more sellers entering the market and the total number of sellers is greater than the total number of buyers.
What’s next for Microsoft?
Microsoft is in the consolidation phase after seeing a big move to the bullish side. The price will continue to consolidate for a while and then make another big move in either direction.
The bulls want to see the stock hold above the $305 level for the move to hint at the bullish side. The bears want to see the stock fall below the $305 level and then fall below the higher low trendline. If the upper low trendline is broken, the security could see a long-term trend change and start a downtrend.