Microsoft stock trims losses to 1.42% as RSI signals bullish sentiment
Microsoft stock rebounds off key support after sharp intraday reversal.
Microsoft (NASDAQ: MSFT) share price experienced notable volatility on Monday, opening at $393.23 and rallying to a three-week high of $394.6 before reversing sharply.
The stock fell 2.6% from its intraday peak, breaching the 50-day Exponential Moving Average (EMA) at $392.5. This decline placed April’s gains at 3.5%, though the stock remains down 8.9% year-to-date.
The sell-off found a floor at $385, a critical support level that has held since early March. Buyers stepped in here, enabling a partial recovery that trimmed losses to 1.42% by the close. Monday’s finish at $387.7 reflects a market balancing short-term bearish momentum against longer-term bullish fundamentals, including Microsoft’s cloud-computing dominance and AI investments.
Microsoft stock price eyes $404 as critical resistance zone looms near 40-day EMA
As trading resumes Tuesday, technical factors suggest potential upward momentum. A bullish market structure shift occurred after prices broke above the last high in the recent downtrend on daily charts. The 4-hour Relative Strength Index (RSI) at 56 and daily RSI at 52 both signal growing bullish sentiment, hovering above the neutral 50 mark without entering overbought territory.
MSFT price dynamics (July 2024 - April 2025). Source: Tradingview
Immediate resistance lies at $396.4, a level that capped rallies in March. A sustained move above this zone could test $404, where the 40-day EMA converges with horizontal resistance. This dual barrier represents a critical test for bulls. A failure to breach $396.4 risks another retest of $385 support, which, if broken, may accelerate selling.
Traders will monitor the $385–$396.4 range for directional clues. A daily close above $396.4 could reignite bullish momentum toward $404, while a drop below $385 might trigger stop-loss orders and deepen losses. The 50-day EMA at $392.5 now acts as a short-term pivot, with volume and volatility likely to increase near these thresholds.
Microsoft stock reversed its downtrend, posting an 11% gain after the U.S. suspended tariffs. The tariff suspension eased market concerns, driving a broad rally in U.S. equities.
