• Microsoft remains above uptrend line

• But momentum indicators are turning lower

Microsoft has its earnings release on Tuesday 30 and its stock price is currently trading slightly below the record peak of 406.70 that it reached on Thursday. The price has been developing within an ascending movement since the end of September 2023.

However, the technical oscillators are indicating a potential downside retracement in the daily timeframe. The RSI is pointing down above the 70 level, while the stochastic oscillator posted a bearish crossover within its %K and %D lines in the overbought zone, suggesting an overstretched market.

If resistance at 406.70 stands firm though, the stock could plummet towards the uptrend line and the 20-day simple moving average (SMA) at 385.00, where the 23.6% Fibonacci retracement level of the up leg from 309.00 to 406.70 is roughly located as well. If the bears breach this zone, the bearish wave might move towards the 50-day SMA at 378.00 ahead of the 377.00 support.

In the positive scenario, where the price jumps above its record high, traders might pay attention to the next uncharted and important numbers such as 410.00 and 420.00.

All in all, despite the negative mood in the market from the technical signals, the upward tendency in the market leaves the door open to another upturn. A rally above 406.70 could renew buying appetite.