Microsoft stock holds support as post-FOMC sentiment battles resistance near monthly high

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Sholanke Dele

30.05.2025

Microsoft stock holds support as post-FOMC sentiment battles resistance near monthly high — Microsoft up 17 percent in May

Microsoft stock is trading near $458.6 on Friday, May 30, after a volatile session on Thursday that began on an optimistic note but lost steam as the day progressed. Despite the bearish close on Wednesday, which ended at $457.23, Thursday opened higher at $461.6, reflecting a 0.9% gap up triggered by the latest FOMC meeting.

• Microsoft trades above key $456.18 support despite Thursday pullback

• RSI signals hint at potential upside continuation into early June

• Monthly gain of 17.4% sets strongest 30-day performance in over 5 years

The initial optimism came from Fed commentary suggesting that elevated inflation continues to delay interest rate cuts. This view supported both the dollar and growth stocks like Microsoft. However, the early gains failed to hold. Microsoft reversed from the open and dropped 1.35% to a three-day low at $455.36 before recovering slightly into the close.

Microsoft stock price dynamics (May 2025)

What helped limit the downside was the presence of a strong confluence of support near $456.18. This level marks the 50% Fibonacci retracement of the recent leg higher, and also aligns with the 50 EMA on the 1-hour chart. Price bounced from this zone on Thursday, suggesting that short-term buyers are stepping in to defend recent gains.

Microsoft stock poised for upside if $456.18 Fibonacci support holds firm

Technically, the RSI on both the 1-hour and 4-hour charts is still in bullish territory. This reflects that, despite Thursday’s selloff, momentum indicators have not broken down and could support another move to the upside.

Microsoft’s month-to-date gain stands at 17.4%, making this the best monthly performance in over five years. The rally has been largely driven by a strong quarterly earnings report that boosted investor sentiment early in May. As of now, the stock is up 1.8% on the week.

Looking ahead, the ability of Microsoft to hold above the $456.18 support zone is key. If buyers manage to maintain control, then Thursday’s high at $461.7 serves as the first upside target. A further push above $462.5, the initial high for the week, could open the door to a new monthly high.

Until that happens, the market will likely focus on the balance between near-term support at $456.18 and resistance between $461.7 and $462.5, as the stock consolidates its historic monthly gain.

Microsoft rebounded off the 20 EMA and pushed toward its July 2023 peak. A favorable tariff ruling improved market sentiment and lifted buying interest.

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