After breaking to the upside of the 50 simple moving average back in early February this year, Microsoft shares have traded in a steady uptrend and found support at the moving average. Price looks ready to make another test of the dynamic support area and might be due for another quick bounce.
Take note though that MACD is heading down, suggesting that selling pressure is mounting. This might lead to a test of the moving average or perhaps a breakdown, depending on how news for Microsoft shares turn out.
Microsoft Shares Forecast
RSI is also indicating a buildup in selling momentum, as the oscillator is heading down from the 50.0 area. This could mean that Microsoft shares could make another test of the moving average or have a downside break in the works. If the latter happens, Microsoft shares could head to the next support area at $38.50.
A bounce, on the other hand, could lead to a rally to the previous highs near $41.50 per share. Sales of the Xbox console announced during the latest E3 might be crucial in determining whether the uptrend could be sustained or not.
“We will continue to listen to you, our community, and will continue to make Xbox for you,” said Phil Spencer, the recently appointed head of Microsoft’s Xbox business. This new console is a less expensive model without the Kinect sensor bundled.
As for video games, Microsoft is trying again with “Halo” by releasing a new version, “Halo 5: Guardians,” next year. It’s also repackaging the first four editions in a box-set for the Xbox One called “Halo: The Master Chief Collection.” The set also includes access to a multiplayer beta test of “Halo 5″ and a live-action “Halo” video series.
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