Since the beginning of the month, Microsoft (MSFT) shares have fallen more than 3%. While the Nasdaq 100 (US Tech 100 mini on FXOpen) remains positive, Microsoft stock has noticeably underperformed. It opened at $427.47 on October 1, and closed yesterday at $413.72, reflecting a significant decline.
One of the main factors behind this bearish sentiment is a report from Oppenheimer analysts. They suggest that Microsoft’s financial performance may be affected by losses related to OpenAI. Furthermore, Oppenheimer downgraded Microsoft stock, which is a negative sign ahead of the upcoming third-quarter earnings season.
Technical analysis of the Microsoft stock chart reveals that the price is approaching a crucial support area, consisting of:
The lower limit of the ascending channel (in blue), active since early 2024. Psychological level $400 per share.
Possible future developments:
Bull case: Microsoft stock price may rebound from this support area. Yesterday’s bullish candle indicates increasing demand. Bearish case: The middle line of the blue channel acted as resistance (marked with an arrow). If speculators maintain control, the next key level could be the previous support at $425.
The trend depends largely on Microsoft’s third-quarter earnings report, scheduled for release on October 22.
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