⬤ Microsoft stock dropped hard before catching support right at the January 21 lows. The stock tested that prior low zone during Friday's session and held, showing buyers stepped in after the recent slide. MSFT is now sitting at a make-or-break technical spot following the volatile move down.
⬤ The chart shows Microsoft selling off from recent highs and quickly falling into the low $430s, which lines up with the January support area. That zone acted as a bounce point rather than a breakdown level since price couldn't hold below it. The rejection hints that downside pressure has cooled off, but the stock hasn't flipped bullish yet. Microsoft remains stuck below nearby resistance, leaving the short-term direction uncertain.
⬤ All eyes are on the $439 level, which is the key line in the sand for confirmation. If MSFT can push back above $439 and hold it, that would signal buyers are taking back control and could set up a short-term momentum trade. Until that happens, the price action looks more like a correction than a real reversal, with Microsoft in a shaky recovery phase rather than a confirmed bounce.
⬤ This setup matters because Microsoft carries serious weight in the broader market and major indexes. MSFT often leads during momentum-driven rallies, and whether it can reclaim key levels shapes near-term market sentiment. Right now, the technical picture is clear: holding the January lows keeps immediate downside risk in check, but breaking above $439 is what's needed to shift the outlook toward renewed strength.
Artem Voloskovets
Artem Voloskovets