Technical Analysis – Microsoft stock slips in narrow range in near term

Melina Deltas, XM Investment Research Desk

Microsoft price moved lower over the last few sessions, after it hit a new a multi-month high around 130.64, remaining in a short-term narrow range of 122.94 – 130.64. Looking at the momentum indicators, the RSI is flattening around the 50 level, while the stochastic is trying to turn higher in the daily timeframe.

A move to the downside could find support at the lower boundary of the range of 122.94, which stands around the 40-simple moving average (SMA). A violation of this barrier could send prices until the 23.6% Fibonacci retracement level of the upward movement from 94.50 to 130.64 around 122.00.

In the event of positive pressures, the market could meet resistance at 130.64, taken from the latest highs, while if the market faces steeper increases, the stock could touch a fresh all-time high.

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