Microsoft stock struggles below key EMAs despite consistent revenue growth
Microsoft struggles to recover from its recent sell-off
Microsoft (NASDAQ: MSFT) is currently trading at $390.58, remaining below both the 50-day and 200-day exponential moving averages (EMAs). This signals ongoing short-term weakness, despite the stock's strong long-term fundamentals.
The stock attempted a rebound in recent sessions but has struggled to break above the 50-day EMA at $402.36. A sustained move above this level would be the first sign of a trend reversal, while the 200-day EMA at $412.53 remains a major resistance point.
If selling pressure continues, MSFT could test support at $385. A break below this level may push the stock toward $375 or even $360 in a more extended decline. Bulls need to reclaim $402.36 to shift momentum back in their favor.
MSFT stock price dynamics (October 2024 – March 2025). Source: TradingView.
Market context
Microsoft's stock has been under pressure recently, but analysts continue to view it as a strong long-term investment. According to a Yahoo Finance report, Microsoft's diversified business model, growing cloud segment, and leadership in artificial intelligence (AI) position it well for future growth.The company's Azure cloud computing division continues to expand, benefiting from the increasing adoption of AI-driven services. Microsoft’s strategic investments in OpenAI and AI-driven enterprise solutions give it a competitive edge over rivals like Google and Amazon.
Despite the stock's current weakness, institutional investors remain optimistic about its future. Analysts highlight Microsoft's consistent revenue growth, high-profit margins, and strong free cash flow as key reasons for its long-term investment appeal. The recent dip in stock price may present a buying opportunity for long-term investors, especially if the stock stabilizes above key technical support levels.
Price prediction
Microsoft’s near-term price action depends on whether it can break above the 50-day EMA and hold above key resistance levels.Bullish scenario: If MSFT reclaims $402.36 and breaks past the 200-day EMA at $412.53, it could test the next resistance at $421. A breakout above this level would signal a return to a long-term uptrend.
Neutral scenario: MSFT consolidates between $385 and $402, with traders waiting for a clear breakout direction.
Bearish scenario: A drop below $385 could lead to further declines toward $375 or even $360 if selling pressure intensifies.
For now, Microsoft remains in a short-term downtrend, but its long-term growth story remains intact. Investors should watch for a breakout above $402.36 as a key signal for renewed bullish momentum.
As we have mentioned recently, MSFT remains bearish-to-neutral with $403.66 being the key resistance point now.
