Weaker technical forecast for Microsoft as stock downgraded to Buy Candidate.
StockInvest.us, 4 weeks ago
The Microsoft stock price gained 1.06% on the last trading day (Monday, 6th Nov 2023), rising from $352.80 to $356.53. It has now gained 7 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 last trading day the stock fluctuated 1.19% from a day low at $353.35 to a day high of $357.54. The price has risen in 9 of the last 10 days and is up by 8.26% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 788 thousand more shares were traded than the day before. In total, 23 million shares were bought and sold for approximately $8.30 billion.
On Oct 25, 2023, it was reported that HSBC gave MSFT a "Buy" grade with a "upgrade" action.
The stock has broken the weak rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $347.07, a level that may pose a second chance to hit a runner. According to fan-theory $375.44 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.
Mostly positive signals in the chart today. The Microsoft stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, 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 $344.14 and $328.52. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, October 26, 2023, and so far it has risen 8.73%. 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). Volume is rising along with the price. This is considered to be a good technical signal.
Microsoft finds support from accumulated volume at $340.67 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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 $4.19 (1.19%) between high and low. For the last week, the stock has had daily average volatility of 1.59%.
Since the Microsoft has been rising for 7 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, along with a general good trend, are positive and the stock has broken the rising trend up, which indicates an even stronger rate of rising. We can 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. Due to a possible false trend-break listing stock as pure buy candidate is held back.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate.
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