Microsoft stock downgraded from Buy Candidate to Sell Candidate after Tuesday trading session., 1 month ago


The Microsoft stock price fell by -1.37% on the last day (Tuesday, 2nd Jan 2024) from $376.04 to $370.87. During the last trading day the stock fluctuated 2.49% from a day low at $366.77 to a day high of $375.90. The price has risen in 7 of the last 10 days and is up by 0.04% over the past 2 weeks. Volume has increased on the last day by 6 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 25 million shares were bought and sold for approximately $9.21 billion.

On Dec 28, 2023, it was reported that Wedbush gave MSFT a "Outperform" grade with a "hold" action.

Given the current short-term trend, the stock is expected to rise 18.18% during the next 3 months and, with a 90% probability hold a price between $438.30 and $479.66 at the end of this 3-month period.


Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. The Microsoft stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $374.15 and $373.42. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, November 28, 2023, and so far it has fallen -3.09%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

Microsoft finds support from accumulated volume at $370.73 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 $9.13 between high and low, or 2.49%. For the last week the stock has had daily average volatility of 1.12%.

The Microsoft stock holds several negative signals and despite the positive trend, we believe Microsoft will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.

Check full Microsoft forecast and analysis here.