MSFT continues to move higher

MSFT continues to move higher
Microsoft climbs past $400; $424-$432 now in sight

​Microsoft shares have managed to overcome the selling pressure triggered by the sharp rise in infrastructure spending related to the development of artificial intelligence and supercomputers, which had previously led to some decline in the company’s market capitalization. Even so, profitability metrics remain strong, continuing to support investor demand.

Against this backdrop, resistance in the $396.00-$400.00 range was broken, after which the stock tested the $413.00 level by the close of yesterday’s trading session. In premarket trading, the shares are currently hovering near $417.00, pointing to a positive tone ahead of the U.S. session and preserving the potential for a further rise toward $424.00-$432.00.

Pullbacks into the $400.00-$396.00 area may still be used to open long positions. At the same time, a break below the lower boundary of this range would increase the risk of a decline toward $384.00-$380.00. Even in the event of a correction, however, demand on dips is likely to remain in place.

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