Microsoft shares could have further room to rise after breaking out of a period of consolidation, with technical indicators suggesting the stock may challenge its previous record high and potentially reach $700 to $750.
The stock has gained more than 50% from its June low following strong forecasts released in July. After moving sideways from August through late September, Microsoft shares broke above the recent trading range this week.
Technical indicators, including 20 week Bollinger Bands and the Moving Average Convergence Divergence, are showing stronger momentum, supporting the possibility of further gains.
Microsoft closed at $529.76 on Wednesday, compared with its record high of $555.45. A sustained break above that level could open the way toward the $700 to $750 range, based on projections from the recent rally.
However, analysts warn that market volatility remains elevated because of high oil prices and rising bond yields. A decline below the $465 to $480 range could signal that the current rally has lost momentum.
Technical analysis can indicate possible price movements but does not guarantee future performance or provide investment advice.
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