MSFT’s Momentum Weakening: Where’re the defending levels?
- On the weekly chart: Still within the large uptrend channel since January 2023.
- On the daily chart: The minor uptrend channel since October 2023 was broken with moderate volume.
- Although the long-term uptrend remains intact, the short-term momentum may be pausing.
- There are two price projection models, both leading to the same ultimate target price of $457.
- The large purple N, starting from January 2023.
- The small orange N, starting from October 2023.
- If the momentum is strong, we could expect a clear price movement toward the target price once it surpasses the symmetrical retracement box at $421. However, the price is currently hovering around $421, indicating weakening momentum.
- Both N patterns are an A+ setup.
- Retrace 0.382 of the prior swing and then continue to rise.
- The level of 2.618 Fibonacci extension of the retracement is the N’s target price.
- The price treats the key Fibonacci levels as significant support and resistance levels along the way up.
Conclusion
- Currently, the momentum is weakening, though not yet exhausted.
- Once the price breaks below $400, the short-term momentum will be exhausted, potentially leading to a trend reversal.
- In the long term, for MSFT to sustain the uptrend, the price should remain within the large uptrend channel and above the price level of $367.
**Not Financial Advice**
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
