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Microsoft stock ended on $222.86 on Tuesday after gaining 0.66%

StockInvest.us, 11 months ago

Microsoft

The Microsoft stock gained 0.66% in the last trading day (Tuesday, 13th Oct 2020), rising from $221.40 to $222.86. , and has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 2.17% from a day low at $220.43 to a day high of $225.21. The price has risen in 8 of the last 10 days and is up by 7.53% over the past 2 weeks. Volume fell in the last day by -12 million shares and in total, 29 million shares were bought and sold for approximately $6.40 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.

Royal Bank of Canada is very positive to MSFT and gave it "Outperform" rating on October 13, 2020. The price target was set to $230.00 - $250.00.Over the last 30 days this security got 5 buy, 0 sell and 1 hold ratings.

The stockis 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 $204.17 and $236.45 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.

Microsoft

Mostly positive signals in the chart today. The Microsoft stock holds buy signals from both short and long-term moving averages. In addition, 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 $213.82 and $211.97. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday September 18, 2020 , and it has risen so far 11.21%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). 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.

Microsoft finds support from accumulated volume at $216.54.

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 $4.78 (2.17%) between high and low. For the last week, the stock has had daily average volatility of 2.13%.

Since the Microsoft has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Microsoft stock to perform well in the short-term period.

Check full Microsoft forecast and analysis here.