Microsoft (MSFT) Technical Update & its channel
Microsoft began forming a long-term ascending channel as far back as November 2021, marked by three higher highs and two higher lows, as illustrated on the chart.
The price action became particularly interesting when it broke out of this channel, reaching a new all-time high (ATH) of approximately $557.
However, the underlying fundamentals (catalysts) were insufficient to sustain momentum at that level, leading to a pullback.
The stock is now consolidating around the $522 zone — a key confluence area where the ascending trendline meets a horizontal support level.
Outlook:
If price breaks below this zone and re-enters the channel, a deeper correction could follow, with potential downside targets in the $500 – $480 range.
As always, I encourage you to review the chart, share your thoughts in the comments, and connect if you’d like to discuss further.
Microsoft began forming a long-term ascending channel as far back as November 2021, marked by three higher highs and two higher lows, as illustrated on the chart.
The price action became particularly interesting when it broke out of this channel, reaching a new all-time high (ATH) of approximately $557.
However, the underlying fundamentals (catalysts) were insufficient to sustain momentum at that level, leading to a pullback.
The stock is now consolidating around the $522 zone — a key confluence area where the ascending trendline meets a horizontal support level.
Outlook:
If price breaks below this zone and re-enters the channel, a deeper correction could follow, with potential downside targets in the $500 – $480 range.
As always, I encourage you to review the chart, share your thoughts in the comments, and connect if you’d like to discuss further.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.