Stock of the day: Microsoft

By Tomasz Wisniewski|

Published: October 09 2023, 09:32 GMT+0

Stock of the day: Microsoft


Investors and traders alike have cast a watchful eye on Microsoft, as the tech giant showcased a notably bullish candle on Friday, instigating speculation around whether this upswing will maintain its momentum through the upcoming week. Let’s delve into a comprehensive look.

Zooming out, we observe a formidable uptrend that has characterized Microsoft’s trajectory since November 2022, culminating in a local pinnacle mid-July. However, what followed was a bearish correction, morphing into a wedge pattern, delineated by black lines on the chart, which has captured the attention of keen market participants.

This correction thoughtfully made its way to the 38.2% Fibonacci retracement level, adorned in an orange hue on our charts, which acted not just as a mere number but as a robust support. The price exhibited a bounce, propelling it upwards yet shying away from confirming a full-fledged buy signal. This hesitance is encapsulated in its failure to breach the upper line of the wedge, stationed at the 23.6% Fibonacci retracement level.

For traders who operate with a long-term perspective, a daily close above the aforementioned 23.6% Fibonacci will be pivotal. This action would serve as a beacon, signaling a significant, long-term buy and could potentially usher in a new chapter of sustained upward movement for Microsoft.