Microsoft stock defies RSI overbought signals with four-day bullish streak
Microsoft rises four days straight
Microsoft Corp (MSFT) has extended its weekly gains, posting four consecutive daily upcloses this week, buoyed by a mix of strong earnings sentiment and an easing in U.S.-China trade concerns. The price action has defied typical overbought RSI warnings, instead suggesting strong buyer conviction.
Thursday’s trading session marked a key test of strength as MSFT found support at the former resistance of $450.7, a level that capped gains earlier in January. Holding above this level confirmed the bulls’ grip on momentum, propelling the stock higher by 1.2% intraday before profit-taking slowed the rally near a multi-month resistance at $456.2. The stock eventually closed at $453.06.
Microsoft stock price dynamics (Dec 2024 - May 2025)
Technically, the resistance zone between $456.1 and $456.2 is now the key ceiling. Breaking above this region would clear the path toward the record high of $468.5. Price is currently hovering around $453.0 in premarket trading on Friday, which puts the all-time high just 3.3% away. If upward momentum resumes, MSFT could close the week on five straight bullish days, a feat not seen in recent months.
Microsoft stock volume support hints at institutional accumulation despite overbought RSI
Volume data adds conviction to the rally. Rather than fading, volume has kept steady throughout the week, showing that investor interest hasn’t dried up following last week’s earnings beat. The improving geopolitical sentiment from U.S.-China trade de-escalation has also reduced risk pressure on tech-heavy stocks like Microsoft, making them attractive again for portfolio inflows.
From a technical perspective, the RSI staying in overbought territory hasn't slowed down the rally. In this context, it appears to reflect strength rather than exhaustion. However, if the cooling from Thursday's late session continues, the price may retest the $450 level to build fresh momentum. This level now serves as a key short-term pivot for bulls. All eyes will be on whether MSFT challenges the $456 barrier or pulls back to reconfirm support before another leg up.
Microsoft stock fell after reports of 6,000 job cuts disrupted its bullish momentum. Price tested the $445 support level after failing to hold recent highs.
