Microsoft (MSFT) Stock Hits a 4.5-Month High
On 31 October, our analysis of Microsoft (MSFT) stock highlighted:
The price is forming a long-term upward channel, illustrated in blue.
The channels lower boundary serves as a significant support level.
On Friday, MSFT stock climbed to $445, its highest level since mid-July, buoyed by news that OpenAI may grant Microsoft access to key AI-related technologies.
Will the Price Continue to Rise?
There are reasons to suspect that the bullish momentum may not sustain.
Technical analysis of MSFTs chart today suggests:
The price is near the median of the long-term channel, and this median could act as resistance. This is hinted at by the long upper shadows on Thursday and Fridays candles.
The emerging bullish breakout above the September high around $441 might prove to be a false breakout, similar to the false bearish breakout of early October support near $408 (highlighted with arrows).
Additionally, Microsofts stock has underperformed compared to market indices, which are at historic highs. This could mean the price may retrace to $430 or lower, aligning more closely with average autumn levels.
Analysts, however, remain optimistic about MSFTs prospects. According to TipRanks:
26 out of 29 analysts recommend buying MSFT stock.
The average 12-month price target for MSFT is $497.
Read more: https://fxopen.com/blog/en/oa-microsoft-msft-stock-hits-a-4-5-month-high/
Text source: Forex Trading Blog
