Microsoft (NASDAQ : MSFT) on the 4-Hour Chart has been in a downtrend since 27 April 2021 when it registered the high price at $263.17, followed by a series of lower tops and lower bottoms.
Recent Price Analysis
On 4 May 2021, MSFT recorded the low price of $245.76.
When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms its downward direction.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.
Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment.
All three technical indicators are in agreement with regards to the downward bias of MSFT.
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at $245.81 (161.8%).
- The second price target is seen at $240.54 (261.8%).
- The third price target is projected at $232.02 (423.6%).
While the first target has already been breached, Microsoft is currently trading below the downtrend line. The presence of the Long Black Body hints at a potential rally to the downside.
Its current price is 2.06% below the last week’s close after a sharp decline in price during a period of heavy selling. Of course, supply and demand as well as the crowd sentiment will determine the future course of MSFT.
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