What To Watch For In Microsoft Stock As Fed's Monetary Policy Spooks Investors
Microsoft Corporation NASDAQ:MSFT spiked up about 1% higher on Thursday morning after a bearish day on Wednesday saw the tech giant slide almost 5%.
Stocks in the broader technology sector have been hammered over recent weeks, leading the S&P 500 down over 15% since
The Federal Reserve's decision to hike interest rates combined with its plan to begin quantitative tightening on
Stocks, and the market in general, never head straight south, and bounces to the upside are part of every bear cycle. On Thursday, the bulls and the bears were battling for control of Microsoft's stock, and the outcome will provide clues as to whether the downtrend is set to continue or if the stock is about to reverse course.
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The Microsoft Chart: Microsoft has been trading in a steep downtrend since
- On Thursday, the battle between the bulls and the bears had Microsoft working to print a doji candlestick on the daily chart. If the stock closes flat, creating a doji, it could signal a reversal to the upside is on the way. If the bulls win and Microsoft closes the trading session near its high-of-day, the stock will print a hammer candlestick, which could also signal more upside.
- If Microsoft closes the session near its low-of-day price, the bears will remain in control and the stock is likely to fall lower on Friday and continue in its downtrend. If the stock trades higher on Friday, Microsoft will have formed a higher low, which would be the first indication the downtrend is at least temporarily over.
- Microsoft has resistance above at
$256.84 and$263.19 and support below at$249 and$243 .
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