Microsoft stock upgraded from Hold/Accumulate to Buy Candidate after Friday trading session.
(Updated on Jan 14, 2022)

The Microsoft stock price gained 1.77% on the last trading day (Friday, 14th Jan 2022), rising from $304.80 to $310.20. During the day the stock fluctuated 2.33% from a day low at $303.75 to a day high of $310.82. The price has been going up and down for this period, and there has been a -7.77% loss for the last 2 weeks. Volume fell on the last day by -6 million shares and in total, 40 million shares were bought and sold for approximately $12.30 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.

The stock is at the lower part of a wide and horizontal trend in the short term, and normally this may pose a good buying opportunity, though a breakdown through the bottom trend line at $304.86 will give a strong sell signal and a trend shift may be expected. Given the current horizontal trend, you can expect Microsoft stock with a 90% probability to be traded between $308.37 and $349.45 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 top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Signals & Forecast

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 $312.92 and $328.26. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Some positive signals were issued as well, and these may have some influence on the near short-term development. A buy signal was issued from a pivot bottom point on Thursday, January 13, 2022, and so far it has risen 1.77%. Further rise is indicated until a new top pivot has been found. 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.

Sell

Special Signal Notification

Double Top Formation

A sell signal from a double top formation was found on Monday, December 27, 2021 with a target of $328.08. Despite whether the objective of the signal formation has been reached the stock may continue to fall.

Support, Risk & Stop-loss

Microsoft finds support from accumulated volume at $310.11 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 $7.07 between high and low, or 2.33%. For the last week, the stock has had a daily average volatility of 3.07%.

Microsoft is oversold on RSI14 (20). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

Our recommended stop-loss: $293.37 (-5.43%) (This stock has medium daily movements and this gives medium risk. Low RSI14 is 20 which reduces the risk some. There is a buy signal from a pivot bottom found 1 days ago.)

Is Microsoft Corporation stock A Buy?

Several of the signals/indicators are negative, and we believe that this will affect on the development for the next days and maybe possible weeks. However, over time, we think that today's level holds a possible buying opportunity and that the price will be higher during or at the end of this 3-month period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 1.177

Insiders are very negative selling more shares than they are buying in Microsoft

In the last 100 trades there were 408.23 thousand shares bought and 1.46 million shares sold. The last trade was done 35 days ago by Jolla Alice L. who bough 4.48 thousand shares. In general the insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.

Remember To Visit Our YouTube Channel