Shares of Microsoft Corporation MSFT have reached an important crossroads. The path they take may set the direction for the entire stock market.
Microsoft's stock has hit resistance at $305. There is a wall of sellers at this level. When the shares reached it in August and again in September, they rolled over and moved lower.
The stock has reached this critical level once again.
If it breaks the resistance and trades higher, it will show that the sellers who created it are gone. Buyers will need to pay higher prices and this will force the stock into rally mode.
But if the resistance doesn’t break, it will show the sellers are still in the market. This means there’s a good chance shares trend lower once again.
To learn more about chart reading, be sure to check out the new Benzinga Trading School.
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