The last time we wrote about Microsoft (MSFT) was in a post titled ‘Should You Buy Microsoft 356 (SMA)?‘ dated 3 months ago.
At that time, the stock was trading at $296 and supporting 11.58% below, at $261.73, was its best respected moving average line for the past 5.5 years- the 356-day SMA.
On March 3rd, 2022, the strong support line held MSFT beautifully: the stock’s low price of the day printed $270, just pennies above the SMA firm presence at $269.21.
Share price fired up 16.97% to a high of $315.82.
However, unlike past behavior, MSFT did not continue to create a higher high. Instead, it turned around and came back down to a close proximity to the good ol’ 356-day SMA support line:
Microsoft’s stock, MSFT, closed yesterday at $279.83, merely 1.54% above its best respected moving average support line for nearly-6-years now. The ‘veteran line’, 356-day SMA, holds the value of $275.52.
What’s next?
Is this a second opportunity to buy Microsoft at support? Or does the failure to set a higher high after a bounce off the support line indicate the support line tenure is about to end after so many years ‘in office’?