What's Next For Microsoft Stock As It Holds Above Key Level?

Microsoft Corp. MSFT shares were trading higher Wednesday amid overall market strength as stocks gain following better-than-expected earnings from major companies. The company also announced yesterday the acquisition of Activision Blizzard.

Microsoft was up 1.67% at $307.70 at time of publication.

See Also: Why Microsoft Shares Are Rising

Microsoft Daily Chart Analysis

• Shares look to be holding an old resistance level as an area of support and could be ready for a push higher if volume continues to come into the stock at an above average rate. The $305 level is a key one that once held as resistance in an ascending triangle pattern. Support may now be found near this level as well as the higher low trendline.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue). This indicates the stock is in a period of consolidation. The 50-day moving average may act as an area of resistance, while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) looks like it has been curling back higher over the last few days and sits at 39. This shows that sellers are still in control overall but lately more buyers have been moving into the market.

What’s Next For Microsoft?

Microsoft looks to be in a period of consolidation after being able to break above the $305 level. The stock is trying to hold above this level and possibly go on another run again in the future. Bulls are looking to see the RSI start to climb and for the stock to begin forming higher lows. This may make the price breakout once again and start a bullish market.

Bears are looking to see the stock fall back below the $305 level and break below the 200-day moving average.