MSFT Drops Below 200-Day Average for First Time in a Year

⬤ Microsoft shares tumbled after breaking below the 200-day moving average, a technical level that's been holding the stock up for months. This wasn't some random drop—the chart was flashing warning signals before the selloff kicked in. For the first time in about a year, MSFT is trading beneath this crucial long-term support line, and that's changing the whole technical picture.

⬤ Here's the thing: the 200-day moving average had been doing serious work. It caught MSFT during multiple pullbacks in late 2024 and launched some pretty strong rallies each time. Whenever the stock dipped down to test that level, buyers showed up and pushed it back higher. But this time? Different story.

⬤ When price first slipped below the average, it tried to fight back above it—looked like it might hold for a second. That recovery attempt fizzled out fast. The stock got rejected right near the same level, reversed hard, and then selling really picked up steam.

⬤ The chart tells you even more when you dig into it. Check out the volume profile on the right side—there's massive trading activity sitting above where the stock is now. That's overhead supply, and it matters. Once MSFT lost the 200-day moving average, that old support flipped into resistance. And when widely watched technical levels break like this? Buyers tend to step aside, and price can drop fast.

⬤ This move carries weight because Microsoft isn't just any stock—it's a heavyweight in US equity indices. When big-cap names break down technically, it can ripple through the broader market. Sure, technical analysis doesn't give you perfect predictions, but this example shows how repeated tests of key levels, followed by failed bounces, often set the stage for sharp directional moves. The MSFT chart's showing exactly how weakening support and rejected recoveries can explain why strong moves sometimes develop after consolidation periods, shifting overall market momentum.