Microsoft stock downgraded to Sell Candidate

The Microsoft stock fell by -2.84% on the last day (Monday, 26th Oct 2020) from $216.23 to $210.08. During the day the stock fluctuated 3.96% from a day low at $208.10 to a day high of $216.34. The price has risen in 5 of the last 10 days, but is still down by -5.11% for this period. Volume has increased on the last day by 18 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, 36 million shares were bought and sold for approximately $7.66 billion.

Barclays is very positive to MSFT and gave it a "Overweight" rating on October 23, 2020. The price target was set to $234.00 - $249.00.Over the last 30 days, this security got 13 buy, 0 sell and 1 hold ratings.

The stock is moving within a wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Microsoft stock with a 90% probability to be traded between $204.97 and $237.33 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Furthermore, there is a buy signal from the 3 months 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 sales signals from both short and long-term moving averages. On corrections up, there will be some resistance from the lines at $214.93 and $210.14. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Tuesday, October 13, 2020, and so far it has fallen -5.73%. 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 $205.01.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $8.24 (3.96%) between high and low. For the last week, the stock has had a daily average volatility of 2.25%.

Microsoft holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore 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 Candidate to a Sell Candidate candidate.