Microsoft stock sees weekly gains erode as price retreats below key resistance
Microsoft stock cools after hitting 10-month high near $460
Microsoft Corp's share price has given back some of its early May gains after hitting a 10-month high at $459.7 earlier this week.
The initial upsurge, which lifted price above the $456 resistance level, is now cooling off following a steady two-day pullback that has dragged price back below the key resistance.
Highlights
- Microsoft stock is consolidating below $456 after rallying to a 10-month high.
- RSI near 80 and a dip below 20 EMA suggest short-term fatigue.
- Microsoft CCO’s $7.33 million stock sale may have added mild selling pressure.
Wednesday’s premarket session showed a 1% decline from Tuesday’s high, pushing Microsoft stock price to around $453.6. The retracement has now positioned the stock in a narrow range between short-term support at $450.7 and resistance at $456. This shift in momentum has reduced some of the bullish pressure that dominated the start of the week.
Microsoft stock RSI near 80 flags short-term exhaustion despite May’s 15% gain
Despite the current pullback, the stock has still gained more than 15% so far in May, driven largely by market enthusiasm surrounding Microsoft's cloud growth and recent investor confidence. However, the recent 16,000 share sale by Judson Althoff, Microsoft’s Chief Commercial Officer, valued at $7.33 million, could have introduced mild profit-taking pressure into the market. This stock sale, disclosed in a Form 4 SEC filing, may have contributed to the pause in the current bullish rally.
Microsoft stock price dynamics (Oct 2024 - May 2025)
From a technical angle, Microsoft’s four-hour chart shows that premarket trading has dropped below the 20 EMA. This is a key development as sustained price action below this moving average opens the path toward the weekly support at $450.7. Should price breach this support, the next critical level to watch would be last week’s low at $448.9. A move below that level may be interpreted by traders as a shift in trend from short-term retracement to broader bearish pressure.
RSI readings near the 80 mark continue to suggest that the stock entered overbought territory earlier this week. This further validates the recent pullback as a natural cooling-off phase following an extended rally. For now, price remains trapped in a technical squeeze between resistance and support, and traders are likely watching for either a renewed push above $456 or a deeper decline below $450.7 for directional clues.
Microsoft stock posted four straight daily gains last week as easing U.S.-China tensions lifted earnings optimism. Price pushed higher despite RSI overbought signals showing buyers stayed in control.
