Technical Analysis – Microsoft stock remains strongly bearish; attempts to break lower
March 29, 2018 2:26 pm
Microsoft stock retreated again after finding resistance near the 95.30 barrier this week. The price completed four consecutive negative sessions in the 4-hour chart, plunging below the 20- and 40-period simple moving averages (SMA). The technical picture now supports that the bearish bias is likely to continue in the short-term.
Looking at the momentum indicators, the RSI is negatively sloped, slightly lower its neutral threshold of 50, while the stochastic is falling towards the 20 level, signaling that the market is approaching oversold territory.
In the wake of negative pressures, the market could meet support at the 38.2% Fibonacci retracement level of 87.84 of the upleg from 72.90 to 97.00. A successful close below this level could see a retest of the previous low of 87.20, while if the market faces steeper declines, the stock could breach this though, diving towards the 50.0% Fibonacci mark of 85.00.
On the flip side, a move to the upside could see immediate resistance at the 23.6% Fibonacci of 91.37 before the 20-day SMA comes into view. A stronger barrier, though, could be found at 95.30, since any violation of this point could increase chances for further gains probably towards the 97.00 psychological level.
Microsoft stock retreated again after finding resistance near the 95.30 barrier this week. The price completed four consecutive negative sessions in the 4-hour chart, plunging below the 20- and 40-period simple moving averages (SMA). The technical picture now supports that the bearish bias is likely to continue in the short-term.
Looking at the momentum indicators, the RSI is negatively sloped, slightly lower its neutral threshold of 50, while the stochastic is falling towards the 20 level, signaling that the market is approaching oversold territory.
In the wake of negative pressures, the market could meet support at the 38.2% Fibonacci retracement level of 87.84 of the upleg from 72.90 to 97.00. A successful close below this level could see a retest of the previous low of 87.20, while if the market faces steeper declines, the stock could breach this though, diving towards the 50.0% Fibonacci mark of 85.00.
On the flip side, a move to the upside could see immediate resistance at the 23.6% Fibonacci of 91.37 before the 20-day SMA comes into view. A stronger barrier, though, could be found at 95.30, since any violation of this point could increase chances for further gains probably towards the 97.00 psychological level.
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