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- 1 MSFT stock is losing gains, shows profit booking.
- 2 MSFT stock shows a falling wedge pattern on the daily charts.
Microsoft Corporation (NASDAQ: MSFT) MSFT share price is close to the 50-day EMA near the support zone of $320, which buyers are trying to sustain and are looking for a pullback. Furthermore, the price action shows the lower lows pattern, showcasing profit booking on the top. However, the MSFT share price has retraced toward the 61.8% Fib zone and shows the 20, 50, and 100-day EMA converging. However, the bulls must smash the immediate resistance mark of $330 to initiate a rebound.
MSFT stock price is in an uptrend and has shown bull dominance. However, amid the positive cues, MSFT stock paused, and some profit booking was witnessed in the past sessions. Moreover, technicals suggest that MSFT stock will reach $400 by the end of 2023, per the chart formation. Furthermore, bullishness is highly likely to persist. Due to the broad selling in the market, MSFT stock has been affected and lost 2- 3% last week, which is not a sign of a reversal. Additionally, if the market attempts a recovery, MSFT stock will be the first one to skyrocket in the following sessions.
Besides the technicals, MSFT stock based on the options chain shows that, at the strike price of $320, a massive open interest of 9000 hundred shares on the call side shows a strong hurdle, a challenge for the bulls to surpass. In contrast, at the strike price of $315, the open interest of 5671 hundred shares on the put side indicates the immediate support zone if any selloff happens in the following sessions.
At press time, the MSFT share price is trading at $319.36 with an intraday gain of 0.13%, showing a neutral chart structure. Moreover, the trading volume remained average at 16.780 Million, while the market cap is $2.373 Trillion. Furthermore, analysts maintained a strong buy rating with a yearly target price of $396.56, suggesting a solid growth outlook for the upcoming sessions.
Microsoft Corp. engages in the development and support of software, services, devices, and solutions. It operates through the following business segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of Office Commercial (Office 365 subscriptions), Office 365 portion of Microsoft 365 Commercial subscriptions (Office licensed on-premises), and Exchange. The Intelligent Cloud segment consists of Server products and cloud services, including Azure and other cloud services. The company was founded by Paul Gardner Allen and William Henry Gates, III in 1975 and is headquartered in Redmond, WA.
Will MSFT Stock Price Regain Momentum Above $320?
On the daily charts, MSFT stock price has shown a retracement and has retested the 100-day EMA near $320 in the past sessions. However, the MSFT share price is in an uptrend, holding the gains in the bull trajectory. However, bulls must surpass the immediate hurdle of $330 to return and resume the uptrend.
The RSI curve shows neutrality and a bullish divergence, indicating a significant bounce toward $330, as seen in the upcoming sessions.The MACD shows a bearish crossover and red bars on the histogram, showing the selling pressure.
Summary
Microsoft Corporation (NASDAQ: MSFT) MSFT share price is close to the 100-day EMA and shows retracement from the highs of $360 in the past sessions. Moreover, the price action shows that bulls are trying to regain momentum and are looking for a pullback to surpass the immediate hurdle of $330. In case of a bounce, the upper trajectory of $360 may retest and stretch to $400 in the following sessions.
Technical Levels
Support Levels: $310 and $300
Resistance Levels: $325 and $340
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
