Microsoft stock edges closer to all-time high as legal ruling fuels risk appetite
Microsoft stock approaches all-time high after 2.3% weekly gain
Microsoft stock is on track for a strong weekly performance, driven by a mix of renewed investor risk appetite and resilient technical support on price charts.
The week began on a bullish note as price broke above last week's tight consolidation range. This breakout formed the base of an early rally, pushing the stock closer to the upper levels seen in July 2023.
Highlights
-Microsoft stock gains 2.3% this week and trades near its July 2023 peak
-Federal court tariff ruling boosts broader market sentiment
-Price action rebounded off 20 EMA and now eyes previous day’s high
However, Wednesday’s price action briefly threatened that momentum. The stock opened at $461.33 and extended to a high at $462.6 before reversing to a low at $457, closing just above that level. Despite the downside move, it’s notable that a higher high was printed before the decline. More importantly, the 20 EMA on the 1-hour chart provided a cushion, slowing the selloff and maintaining the short-term bullish structure.
Microsoft stock price dynamics (May 2025)
Thursday premarket action shows renewed strength, given the stock lift to $460.7. This rebound is drawing fresh attention to the prior day’s high and suggests that market participants are still willing to buy into strength. One of the key drivers behind this renewed optimism is a U.S. federal court ruling that invalidated President Trump’s global tariffs. The Court of International Trade ruled that the legal basis used to justify the tariffs had been misapplied, which opened the door for stronger risk appetite across global equities.
Microsoft outlook strengthens, while 20 EMA and RSI support near-term rally
For Microsoft, this legal development is fuelling broader bullish sentiment across tech and growth stocks. Although the RSI signals the stock is trading in overbought territory, price action suggests buyers are still in control. Microsoft has gained 2.3% this week, bringing it within 1.8% of its all-time high at $468.45.
On the downside, the nearest support is yesterday’s low at $457, just above the $456.18 key support level and the 50 EMA at 455.1 on the 1-hour timeframe poses another level of support. These layers offer potential zones where dip-buying could occur if prices pull back.
This week’s price action has created a tight technical setup, supported by broader macro sentiment. If global equity appetite sustains into the end of the week, Microsoft stock could be positioned to reclaim its historic high and potentially enter new territory by early next week.
Microsoft stock fell to $450 after insider selling from top executives shook investor confidence. The break in four-week bullish momentum showed clearer weakness near the key support level at $448.9.
