Microsoft may fall to 370.00 - 379.00

Our pivot point stands at 427.

Our preference

The downside prevails as long as 427 is resistance.

Alternative scenario

The upside breakout of 427 would call for 441 and 450.

Comment

The RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the stock is trading under both its 20 and 50 day moving average (respectively at 438.936 and 438.5706).

Supports and resistances

450 **

441 *

427 **

421

408.49 (USD-last)

387

379 **

370 *

362 **

Number of asterisks represents the strength of support and resistance levels.