Microsoft stock price moved higher on Tuesday after finding support near the 23.6% Fibonacci retracement level of the up-leg from 71.30 to 116.16, around 105.57. Also, the price rebounded on the long-term ascending trend line, however, the technical picture supports a neutral to bullish bias in the daily timeframe.
Looking at the momentum indicators, the RSI is flattening, slightly lower its neutral threshold of 50, while the stochastic is rising and is ready to create a bullish crossover within the %K and %D lines.
A move to the upside could see immediate resistance at the 111.30 resistance level, which overlaps with the negatively aligned 20- and 40-simple moving averages (SMA). A rally and a violation above this strong resistance obstacle could increase chances for further gains probably towards the all-time high of 116.13 level, reached on October 3.
On the flip side, in the wake of negative pressures, the market could meet support at the 104.15 support, which holds below the rising trend line, shifting the bullish outlook to neutral. A successful close below this level could see a retest of 102.50, identified by the highs on June 20. If the market faces steeper declines, the stock could breach this though, diving towards the 38.2% Fibonacci mark of 99.00.
Overall, Microsoft stock retains upside movement over the last eight months, hitting the uptrend line several times in the past.
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