Daily Stock Report

Microsoft Corp - (MSFT) - November 3, 2022

Microsoft (MSFT) has been steadily sliding down the rankings in the SIA S&P 100 Index Report this year. After tumbling down out of the green zone back in January, MSFT spent most of the year bouncing around in the yellow zone. In recent weeks, its relative strength has deteriorated again, with the shares falling into the Red Unfavored Zone and continuing to slide. 

Back in the winter, a long-term uptrend in Microsoft (MSFT) shares peaked, then was broken. Since then, MSFT has been steadily sliding in a Falling Channel of lower highs and lower lows. Last month, a bear market rally failed below the 50-day moving average and the $250.00 round number. The shares have since turned downward once again, and this week, they have taken out $225.00 to confirm the start of a new downleg. 

Next potential downside support appears near the $200.00 round number, followed by $190.00. Initial resistance drops toward the $225.00 breakdown point. 

Since peaking at the beginning of the year, Microsoft (MSFT) has spent the year under distribution steadily declining in a bearish Falling Channel of lower highs and lower lows, completing a series of multiple Double Bottom breakdowns along the way downward. After two rebound attempts failed last month near $250.00, the shares have turned downward again this week sliding back down toward $220.00 and completing another Double Bottom breakdown to signal the start of another downleg. 

Next potential downside support appears between the $200.00 round number, and previous column lows near $196.25, then near $184.95 based on a vertical count. Initial resistance on a rebound appears near $239.25 based on a 3-box reversal.  

With a perfect bearish SMAX score of 0, MSFT is exhibiting weakness across the asset classes. 

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