Microsoft stock slips as gravestone pattern and insider sale weigh on sentiment
Pre-market dip threatens key $451.8 support
Microsoft shares are facing renewed selling pressure on Friday, extending a pullback that began after Thursday’s trading session showed signs of bearish sentiment.
The stock had been consolidating earlier in the week between a low of $450.8 and a high of $459.6, but Thursday’s price action initially hinted at a breakout.
• Microsoft forms gravestone Doji pattern hinting short-term reversal
• Insider selling above $9.75 million pressures market confidence
• Pre-market dip threatens key $451.8 support ahead of regular session open
During the regular session on Thursday, Microsoft opened at $454.8 and briefly rose to an intraday low of $454. From there, it climbed sharply by 1.37% to reach a high of $460.2, clearing the recent consolidation resistance. However, the rally was short-lived. Prices later reversed to close back near the opening level at $454.8, forming a gravestone candlestick pattern.
Microsoft stock price dynamics (Oct 2024 - May 2025)
This single-candle formation often signals a potential reversal when it appears at the top of an uptrend. It reflects buyers’ initial control that was later overtaken by sellers, suggesting waning momentum. The technical pattern has taken on added significance, considering Microsoft’s RSI has entered overbought territory, amplifying concerns about limited upside in the short term.
Microsoft stock weakens as premarket builds on insider-led bearish tone
A fundamental layer may have contributed to the reversal. Insider activity revealed that Kathleen T. Hogan, Executive Vice President of Strategy, sold 21,500 shares on May 21 at a weighted average price of $453.77 per share. The transaction totalled over 9.75 million dollars and occurred within a narrow price band of $453.72 to $453.88. While executives may sell for various reasons, such large-volume transactions around a key price level can sometimes dampen investor confidence, particularly when technical indicators suggest overstretched conditions.
Today, Friday, the selling has extended into premarket hours. Microsoft is currently trading around $453.7, dipping below the previous day’s low and reinforcing bearish sentiment. If this move deepens once the regular session opens, traders may look for a further drop toward $451.8, which marks the two-day low and the next immediate support.
Unless buyers reclaim control early in Friday’s session, the path of least resistance could lead to additional downside. While the broader trend in Microsoft remains positive, the short-term outlook is facing headwinds from both technical exhaustion and the implications of insider selling.
Microsoft stock pulled back below the $456 resistance after reaching a 10-month-high due to overbought RSI. The $7.33 million stock sale by the CCO likely added to the selling pressure.
