Microsoft Corporation (MSFT) “On a long-term technical basis, the stock (MSFT) is trading above its 200-day moving average which generally implies it is in a positive trend. However, the stock has recently broken down through an important fibonacci fan trendline at 202.15 suggesting the next support level is at 198.52. This weakness suggests the long-term uptrend is turning neutral.

The stock has support at 198.52 and 187.51. If the stock breaks down through support at 198.52 then it will probably continue lower to 187.51. The stock will meet resistance at 202.15 and 216.38. If the stock breaks up through resistance at 202.15 then it will probably continue higher to 216.38. The 200-day moving average is at 182.62. This will also act as support. The stock is extremely oversold according to the Stochastic Indicator (17.47), and turning up, which suggests a pause or possible rebound, especially if near support. Confirm this with the Short-Term and Daily Outlook to keep from exiting prematurely.”