Large Pullback on Microsoft Shares – August 6, 2014

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Large Pullback on Microsoft Shares - August 6, 2014

Large Pullback on Microsoft Shares - August 6, 2014

If you’re bullish on Microsoft shares, this could be your chance to catch the uptrend as price made a sharp pullback after its recent strong rally. Microsoft shares encountered resistance at the $45.50/share level and has since retreated to the 50 simple moving average, which has acted as dynamic support for the pair.

MACD is still reflecting strong selling pressure though, as the indicator just came out of the overbought zone and is moving lower. This could mean that a deeper selloff could be in the cards for Microsoft shares, perhaps until the next support area at the 200 SMA.

RSI is still on middle ground, which means that there’s a chance that sellers could push Microsoft shares a little lower should the indicator cross below the 50.0 level. On the other hand, a turnaround could mean that a bounce will take place sooner or later.

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Microsoft Shares Forecast

Risk aversion has been present in the financial markets recently, dragging down higher-yielding and riskier assets such as equities. US stocks have been lagging in the past few days, which explains why Microsoft shares are also seeing weakness these days.

In this month’s release of Windows, Microsoft has announced that it will forego updates on its software. Important bug fixes or software upgrades will have to wait until the next official release of Windows 9.

Meanwhile, Microsoft has recently hired Qualcomm executive in order to enhance the company’s presence in the mobile market. Margaret Johnson will now serve as Microsoft’s executive vice president of business development and report directly to Microsoft CEO Satya Nadella.

“She shares our worldview and knows what it takes to drive new growth in mobility and the cloud,” Nadella said. Johnson has previously served as executive vice president of Qualcomm Technologies and was also president of the San Diego company’s global market development.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com