Microsoft stock downgraded to Hold/Accumulate

The Microsoft stock price fell by -4.23% on the last day (Thursday, 13th Jan 2022) from $318.27 to $304.80. During the day the stock fluctuated 5.54% from a day low at $304.00 to a day high of $320.85. The price has fallen in 6 of the last 10 days and is down by -10.17% for this period. Volume has increased on the last day by 9 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, 43 million shares were bought and sold for approximately $13.15 billion.

On Jan 12, 2022 "BMO Capital Markets" gave "$355.00 - $360.00" rating for MSFT. The price target was set to $317.45+0.8%.

The stock has broken the weak rising short-term trend down. This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at $322.04. A reaction back to this level may hold a second chance to get out before further falls.

There are few to no technical positive signals at the moment. The Microsoft stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $313.80 and $329.06. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Monday, December 27, 2021, and so far it has fallen -10.99%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). 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 $304.21 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $16.85 between high and low, or 5.54%. For the last week, the stock has had a daily average volatility of 3.01%.

Microsoft is oversold on RSI14 (23). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

Microsoft holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation 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 Buy to a Hold/Accumulate candidate.