Technical Analysis – Microsoft stock edges higher but outlook remains neutral to bearish

Melina Deltas, XM Investment Research Desk

Microsoft stock price moved lower on Monday, after it hit a new an almost three-month high around 112.13. Looking at the momentum indicators, the RSI is still edging higher, slightly below the overbought zone, while the stochastic is rising and created a bullish crossover within the %K and %D lines in the positive zone above 80, signaling further gains. Also, the price is trading well above the Ichimoku cloud in the daily timeframe.

In the event of further positive pressures, the market could meet immediate resistance at the 112.90, taken from the highs on December 3. If the market faces steeper increases, the stock could touch the all-time high of 116.13, registered on October 2018.

On the other hand, a move to the downside could find support at the 107.85 obstacle, which stands slightly near the upper boundary of the Ichimoku cloud. A rally and a violation below this barrier could send prices until the 200-day simple moving average (SMA), currently at 105.73.

To conclude, Microsoft stock switched the long-term bullish tendency to a more neutral to bearish one and only a jump above the all-time high would shift the outlook back to positive.