Microsoft Is Catching Its Breath After Climbing From A Recent Analyst Rating

Microsoft Corp. MSFT shares were trading lower early Monday, possibly seeing some consolidation after making a large jump when Wedbush maintained an Outperform rating on the stock and raised its price target from $325 to $350.

Microsoft was up 0.11% at $304.68 at last check Monday afternoon.

Microsoft Daily Chart Analysis

• The stock broke out of an ascending triangle pattern and has shot up higher away from the higher low trendline.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The $260 price level held as resistance in the past, but as the stock is well over this area it could now become support in the price reaches it. The higher low trendline has been acting as support on the stock and may continue to in the future.
• The Relative Strength Index (RSI) has been moving upward the past few days and now sits at 76, well into the overbought range. This shows there recently has been a lot of buyers in the stock.

What’s Next For Microsoft?

Bullish traders are looking to see the stock continue to trade above the higher low trendline and stay on the uptrend it has been on. Bulls have held control of the stock and may continue to if the stock stays above this trendline.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. This could let the stock see a further bearish push. Bears are also looking for the price to cross below the moving averages for a possible change in sentiment.