Very red day for Microsoft stock price after -7.72% fall in Wednesday trading session

The Microsoft stock price fell by -7.72% on the last day (Wednesday, 26th Oct 2022) from $250.66 to $231.32. During the last trading day the stock fluctuated 3.58% from a day low at $230.06 to a day high of $238.30. The price has risen in 6 of the last 10 days and is up by 2.47% over the past 2 weeks. Volume has increased on the last day by 51 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, 82 million shares were bought and sold for approximately $19.08 billion.

The last rating was given by RBC Capital on Oct 26, 2022. The price target was changed from 380 to 310.Over the last 90 days, this security got 2 buy, 28 sell, and 0 hold ratings.

The stock lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled.Given the current short-term trend, the stock is expected to fall -19.87% during the next 3 months and, with a 90% probability hold a price between $172.09 and $200.08 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.

A buy signal was issued from a pivot bottom point on Tuesday, October 11, 2022, and so far it has risen 2.62%. Further rise is indicated until a new top pivot has been found. 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. 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 $240.35 and $241.63. A break-up above any of these levels will issue buy signals. 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 $229.25 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 $8.24 between high and low, or 3.58%. For the last week, the stock has had daily average volatility of 2.96%.

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 to a Sell candidate.