Asset Watch
Thursday, October 19, 2023
Yet, though the fundamentals remain resilient amid a challenging macro environment, Microsoft is on the precipice of medium-term support, so holding the line is essential for the bulls.
The left side of the chart shows how the stock’s 20-week moving average held during most of the 2021 surge. Likewise, Microsoft bounced off its 20-week MA in March 2023 before a major rally unfolded. Therefore, as the stock closes above the milestone on Oct. 17, continued strength supports higher highs in the months ahead.
Should we expect a year-end surge, or will the prior breakdown turn into something more ominous?