MSFT- Watch list

26 בינו׳ 2023

The weekly graph of MSFT's share price shows a clear downward trend within a descending channel, both in the long-term and medium-term. This suggests that any short-term upward trend may encounter resistance from sellers, leading to a lower low than the previous one.
Recently, after the low on October 31st, 2022, we observed a short-term low that was higher than expected. However, with the help of market tailwinds, even though the recent report was not particularly favorable, we may be able to challenge the level of 255.
If we are able to break above 255 and then above 267, it could signal a potential change in the medium-term trend towards further increases. However, as long as we do not break above 267, the negative scenario remains in play and the stock could potentially decline to the level of 200 or even 180 in the next wave of declines with a bearish market tailwind.
It's worth mentioning that Microsoft is considered a defensive stock due to its beta of 0.92, meaning it tends to move roughly in line with the market, even more solid than the market. A break below 219 would be the first negative sign, we will keep monitoring developments and update accordingly.