Microsoft Levels to Watch as Stock Above $500 for 1st Time
26 minutes ago
Microsoft (MSFT) shares hit another record high on Wednesday as the tech giant’s market capitalization moves closer to $4 trillion.
The stock closed at around $503 yesterday, putting its market cap at $3.74 trillion, trailing only Nvidia (NVDA), which briefly surpassed the $4 trillion level on Wednesday.
Investment bank Oppenheimer believes Microsoft has room for further upside, placing a $600 price target on the stock yesterday, in part due to the company’s AI revenue growth prospects. Meanwhile, Wedbush analyst Dan Ives told clients in a note Wednesday that he anticipates Microsoft to reach the $4 trillion mark this summer.
The stock has risen 46% from its early-April low and is nearly 20% higher year-to-date as of Wednesday’s close.
After bottoming near the 200-week moving average in early April, Microsoft shares have remained in a strong uptrend, gaining in 12 of the past 14 weeks.
While the relative strength index confirms bullish price momentum, it has recently crossed into overbought territory, an area on the indicator that has previously coincided with consolidation phases in the stock.
It’s worth noting that the volume has trended downward during the stock’s move higher in recent months, indicating that some larger institutional investors may be waiting for the tech giant’s next earnings report before deploying more capital.
Investors should watch crucial support levels on Microsoft’s chart near $468 and $425.
Read the full technical analysis piece here.
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