Microsoft Corp (MSFT)

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Microsoft (MSFT): Technical Analysis and Price Forecast
By: Bruce Powers | January 25, 2024

• Apple stock shows early signs of hitting resistance while Microsoft, a market leader, hits a $3 trillion market valuation, but a potential short-term pullback may happen soon.

Microsoft Corp. (MSFT)

The stock of Microsoft was a market leader last year as well, and it remains so for the start of 2024. However, it may be ready for a pullback soon. On Wednesday, it reached a high of $405.63 and a new high market capitalization of $3 trillion dollars before pulling back. They are the second company to do so after Apple Corp. However, the high was almost an exact match with the completion of a 200% extension of the most recent retracement. In addition, several other Fibonacci targets levels are around that price increasing the chance to see signs of resistance as selling pressure builds. Wednesday closed weak with a possible bearish shooting candlestick pattern.



Microsoft is a Leader in the AI Revolution

Through its partnership with artificial intelligence (AI) company OpenAI, the maker of ChatGPT, Microsoft is at the forefront of the AI revolution. It has established itself as a leader in the sector with that partnership. Microsoft is scheduled to report earnings on January 30.

Retracement May Test 20-Day Moving Average Support

The most recent breakout level for Microsoft stock was $384.30. It corresponds to potential support around the 61.8% retracement of the most recent upswing at 381.86 and the 20-Day MA at $382.69. Microsoft stock broke out above the 20-Day line three weeks ago and it has not yet been tested as support. You can see how much of the month of December the 20-Day MA marked resistance. It would be healthy for the uptrend if the 20-Day line is tested as support. This does not mean it will be if a retracement kicks in, but it could.

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