Evaluation of Microsoft stock downgraded after the last trading session.

The Microsoft stock price gained 2.14% on the last trading day (Friday, 26th May 2023), rising from $325.92 to $332.89. During the last trading day the stock fluctuated 2.93% from a day low at $323.92 to a day high of $333.40. The price has risen in 7 of the last 10 days and is up by 7.74% over the past 2 weeks. Volume fell on the last day by -4 million shares and in total, 36 million shares were bought and sold for approximately $11.89 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

D.A. Davidson is very positive about MSFT and gave it a "" rating on Feb 08, 2023. The price target was set to 325.

The stock has broken the strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $332.04, a level that may pose a second chance to hit a runner. According to fan-theory $362.09 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

The Microsoft stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $320.85 and $302.67. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 25, 2023, and so far it has risen 20.87%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

On the downside, the stock finds support just below today's level from accumulated volume at $295.37 and $279.43.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Microsoft finds support just below today's level at $295.37. If this is broken, then the next support from accumulated volume will be at $279.43 and $276.20.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $9.48 between high and low, or 2.93%. For the last week the stock has had daily average volatility of 2.03%.

Microsoft holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Hold/Accumulate candidate.