Will Microsoft's stock continue to rise? It'll Have to Clear This Key Level

Will Microsoft's stock continue to rise? It'll Have to Clear This Key Level ...

As U.S. stocks recovered from the slump, Microsoft (MSFT) and Apple (AAPL) have been two of the major players.

The S&

When we examine the charts, there is reason for some caution with the stock.

Is this also the case for Microsoft?

Microsoft's stock is up 21% from its lows in 2022, but a large portion of those gains has come within the last four weeks: The stock is up 17% from that low. For what it's worth, Apple is up about the same 17% in that stretch.

Despite Microsoft's disappointing earnings reports on July 26, the stock has risen. Let's take a look at the charts to see if it's time to put the brakes on.

Microsoft Stock Trader

Microsoft stock chart for the day.

TrendSpider.com is the source for this chart.

Apple and Microsoft, as two of the leading companies in the recent market upturn, should be a focus of investors.

Apple and Microsoft make up about 24% of the Invesco QQQ Trust and more than 13% of the S&P 500, although they aren't trading these specific stocks.

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Microsoft's stock held uptrend support before its earnings report, but it broke out over downtrend resistance following the report.

The stock then stepped up the ante by clearing the critical $270 to $275 area, which had previously gone from previous support to present resistance.

Microsoft is facing a tough obstacle near the $295 mark from here.

The current range is retraced by 50%, but the 200-day and 50-week moving averages also have a 50% increase.

Given how big of a shift weve already seen and the significance of these levels, I expect there to be resistance in this area.

Microsoft will have to get through a $308 to $310 zone in the near future, while the stock will have cleared a host of key levels and measures.

I am keeping an eye on the $285 zone when it comes to the downside.

Microsoft's resistance range from $283.50 to $285 was strongest earlier this month. The $285 to $286 area became support when the stock moved above its 10-day moving average.

The bulls will need to see support if Microsoft stocks hold back from the $285 level.

If it fails, we may be looking at a trip down to the $275 area and the 21-day moving average.

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