It’s been only 5 trading days since we last wrote about Microsoft (‘Retesting Microsoft 356 (SMA)‘) and wondered whether its stock (MSFT) would bounce off its support lines that have been holding for nearly 6 years, or perhaps it would break this strong support and get market participants on their toes.
Well, these 5 trading days revealed the answer was the latter.
Although support and resistance lines should be seen more as areas rather than be taken for the specific price value they hold, this case should be carefully observed for further developments around this price level, especially when Microsoft is scheduled to report its 22Q3 earnings in 2 days (April 26th, 2022).
Microsoft’s stock (MSFT) shifted to respect the following support lines:
- The 371-day SMA as body support
- The 375-day SMA as wick support
Both lines registered on June 28th, 2016, same registration date as the previous support lines.
