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Category: Microsoft (MSFT) and Technical Analysis
Date: 20 July 2020 Stock price of Microsoft: $210.24 Ever wondered where the support and resistance levels for Microsoft (MSFT) stock is? Is it a good time to buy or is there a dip in its future? We take a look at potential support and resistance levels of Microsoft.
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We continue to transform our business to lead in the new era of the intelligent cloud and intelligent edge. We bring technology and products together into experiences and solutions that unlock value for our customers."
About Microsoft (MSFT)
Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. We strive to create local opportunity, growth, and impact in every country around the world. Our platforms and tools help drive small business productivity, large business competitiveness, and public-sector efficiency. They also support new startups, improve educational and health outcomes, and empower human ingenuity.
We continue to transform our business to lead in the new era of the intelligent cloud and intelligent edge. We bring technology and products together into experiences and solutions that unlock value for our customers. In this next phase of innovation, computing is more powerful and ubiquitous from the cloud to the edge. Artificial intelligence (“AI”) capabilities are rapidly advancing, fueled by data and knowledge of the world. Physical and virtual worlds are coming together with the Internet of Things (“IoT”) and mixed reality to create richer experiences that understand the context surrounding people, the things they use, the places they go, and their activities and relationships. A person’s experience with technology spans a multitude of devices and has become increasingly more natural and multi-sensory with voice, ink, and gaze interactions.
We continue to transform our business to lead in the new era of the intelligent cloud and intelligent edge. We bring technology and products together into experiences and solutions that unlock value for our customers. In this next phase of innovation, computing is more powerful and ubiquitous from the cloud to the edge. Artificial intelligence (“AI”) capabilities are rapidly advancing, fueled by data and knowledge of the world. Physical and virtual worlds are coming together with the Internet of Things (“IoT”) and mixed reality to create richer experiences that understand the context surrounding people, the things they use, the places they go, and their activities and relationships. A person’s experience with technology spans a multitude of devices and has become increasingly more natural and multi-sensory with voice, ink, and gaze interactions.
Technical analysis of Microsoft (MSFT) stock
While there are many different technical analysis indicators we tend to follow the principle of keeping things simple. The KIS principle. So we will take a look at the shorter term moving averages and the longer term moving averages as well as the True Strength Index (TSI). So let's focus at the longer term moving averages first. The image below shows the stock price of Microsoft (MSFT) as well as its 50 day and 200 day moving average as well as the TSI for Microsoft
Turning our attention to the moving averages one can see the 50 day moving average is well above the 200 day moving average (which is a positive sign for a company's stock price). If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines. From the image above one can see the 50 day moving average is far away from the 200 day moving average.
Next let's look at the TSI. The TSI has a base value and a signal value. If the signal value crosses above the base value its a positive sign and if the signal value crosses below the base value its an indication of potential stock price declines. So while the signal value is still above the base value both are trending downwards which is a negative sign for Microsoft's stock price.
So should MSFT stock decline more it is expected to find medium and longer term support at the following prices:
Turning our attention to the moving averages one can see the 50 day moving average is well above the 200 day moving average (which is a positive sign for a company's stock price). If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines. From the image above one can see the 50 day moving average is far away from the 200 day moving average.
Next let's look at the TSI. The TSI has a base value and a signal value. If the signal value crosses above the base value its a positive sign and if the signal value crosses below the base value its an indication of potential stock price declines. So while the signal value is still above the base value both are trending downwards which is a negative sign for Microsoft's stock price.
So should MSFT stock decline more it is expected to find medium and longer term support at the following prices:
- 50 day moving average: $193.91
- 200 day moving average : $167.36
The image below is similar to the above expect the moving averages are a lot shorter, however they are interpreted in exactly the same way as the longer term moving averages. Right now the 10 day moving average is well above the 30 day moving average, but the 10 day moving average is slowing and starting to turn negative. So let's take a look at the support levels provided by the 10 and 30 day moving average.
- 10 day moving average: $208.77
- 30 day moving average : $200.85
Support and resistance levels for Microsoft (MSFT) stock based on pivot points
Lastly we take a look at the support and resistance levels of Microsofit based on pivot points. Pivot points are calculated by taking the average of the high, low and closing price over a particular period selected (in this case a month)
Below a summary of the resistance levels, pivot point and the different support levels:
So should the stock of Microsoft hit $211.9 it might struggle to get past that level and if it does its next resistance levels will be at $219.47. However should the stock of Microsoft decline and get to the pivot value of $196.42, and drop below it it will most likely find support at $188.44 and if it falls below that the next support line level is at $173.37
- Resistance 3: $234.54
- Resistance 2: $219.47
- Resistance 1: $211.49
- Pivot Point: $196.42
- Support 1: $188.44
- Support 2: $173.37
- Support 3: $165.39
So should the stock of Microsoft hit $211.9 it might struggle to get past that level and if it does its next resistance levels will be at $219.47. However should the stock of Microsoft decline and get to the pivot value of $196.42, and drop below it it will most likely find support at $188.44 and if it falls below that the next support line level is at $173.37