MSFT Stock Dips; Good Time To Buy?

Microsoft (MSFT) stock price has been in a strong uptrend since 2023, rising from the support level of $222. The stock price surged approximately 63% from the support to form an annual high of $366.78. However, the bullish move was halted when the price surged above the $360 level. The strong presence of bears did not allow the price to close above $362.

MSFT stock price corrected the bullish move and fell to form a support at $314. A bullish rally was commenced for retesting the resistance level of $362, but the move was again halted at $340.

The stock price broke the support level of $314 and closed below it. The last two candles were bullish but did not close back into the zone. If bears push the price below $310, it might melt down toward the next significant support level of $300. On the other hand, if MSFT stock price can rise back into the previous zone, it might rise and retest the resistance level of $340.

Good Time To Buy Microsoft Stock?

Microsoft is the leader in productivity software and is inches away from completing the deal with Blizzard, which will turn it into the world’s third-largest video game company. Microsoft has been in various headlines with its AI efforts and with its stake of 49% in the chatGPT developer OpenAI, making Wallstreet particularly bullish.

The company has a diverse business with Windows, Office, and Azure home brands. The success of its product has increased its revenue by 68% over the last five years, with a rise of 106% in the operating income.

The latest Windows 11 update released on September 26 features the integration of the Copilot AI assistant tool, which is also set to get a full rollout in Microsoft 365 on November 1. Microsoft 365 subscribers increased by 12% year over year.

Will MSFT Price Rise Back Into The Zone?

The stock price has plunged below 20, 50, and 100-day exponential moving averages, suggesting strong participation of bears in the market. MSFT stock price is currently hovering near the 200-day EMA and might be a support.

The Chaikin money flow score has dropped below the 0 mark and stands at -0.07, indicating a slight weakness in the market. The relative strength index has dropped to 36.06, implying bearish momentum in the price.

Conclusion

Microsoft’s (MSFT) share price has surged 174% in the last five years. It has a long history of solid growth and is a compelling investment with positions in multiple high-growth industries.

Technical Levels

Support levels: $300 and $310

Resistance levels: $340 and $362

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.