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Weaker technical forecast for Microsoft as stock downgraded to Sell Candidate.

StockInvest.us, 7 months ago


The Microsoft stock price fell by -1.71% on the last day (Tuesday, 4th Jan 2022) from $334.75 to $329.01. and has now fallen 5 days in a row. During the day the stock fluctuated 2.78% from a day low at $326.12 to a day high of $335.20. The price has been going up and down for this period, and there has been a 2.84% gain for the last 2 weeks. Volume has increased on the last day by 4 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, 33 million shares were bought and sold for approximately $10.72 billion.

On Jan 04, 2022 "Jefferies Financial Group" gave "$375.00" rating for MSFT. The price target was changed from $327.32 to 2.2%.

The stock lies in the lower part of a wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $325.91 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift.Given the current short-term trend, the stock is expected to rise 11.7% during the next 3 months and, with a 90% probability hold a price between $364.04 and $403.37 at the end of this 3-month period.


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. On corrections up, there will be some resistance from the lines at $337.86 and $334.20. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, November 19, 2021, and so far it has fallen -4.11%. 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 $328.34 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 $9.08 (2.78%) between high and low. For the last week, the stock has had a daily average volatility of 1.79%.

The Microsoft stock holds several negative signals and despite the positive trend, we believe Microsoft will perform weakly in the next couple of days or weeks. Therefore, we 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.

Check full Microsoft forecast and analysis here.