Microsoft stock price pulls back below $473.5 in Friday premarket amid profit-taking pressure
Microsoft stock faces resistance at $480
Microsoft stock is experiencing its third consecutive week of upward momentum, but the rally is starting to show early signs of fatigue. After touching a fresh high during the week, the stock has met strong psychological resistance near $480, which appears to have capped bullish enthusiasm for now.
- Microsoft stock faces resistance at $480 after a strong three-week rally
- Price drops below Thursday’s low as RSI flashes overbought warning
- Weekly gain still holds at 0.78% while $468.5 remains the key pivot level
The week began on a strong note when Microsoft's stock price rebounded off its previous all time high in July 2024 at $468.5. This level was been broken earlier and flipped to act as technical support. That bounce set the tone for early gains, encouraging bullish sentiment and allowing the stock to push higher.
Microsoft stock price dynamics (May - June 2025). Source: TradingView
Thursday’s session was particularly eventful. The stock opened at $474.9, briefly dipped to $436.6, then surged by 1.44% to touch an intraday high at $480.5. However, the $480.0 level proved to be a tough barrier. By the close of the session, Microsoft had retraced slightly to end the day at $478.9.
Microsoft volume trend remains supportive despite 1% drop in premarket session
As of Friday’s premarket session, sellers have regained some control. Microsoft stock has pulled back below Thursday’s low near $473.5, wiping out all of the previous day’s gains. The drop of over 1% suggests that price may have moved too far too fast, and the decline likely reflects overbought conditions, as shown on both the daily and 4-hour RSI indicators.
Technically, the key near-term support to monitor is at $473.3. A breakdown below that level could bring the price down to $468.5, where the 20 EMA on the 4-hour chart offers additional support. This same level coincides with the previous all-time high, which has already proven to be a strong pivot point this week.
Despite today’s pullback, the week is still holding onto a gain of 0.78%, and the month-to-date advance stands at 3.55%. Volume has been increasing throughout this week’s rally, pointing to strong market participation. This volume support may help prevent further price slide and offer some stability if the price tests the lower support levels.
Unless the price breaks significantly below $468.5, the broader bullish outlook could hold. However, a deeper correction would put the recent weekly gains under pressure and call into question the strength of the current uptrend.
Microsoft stock broke above $470 to a fresh all-time high as bullish sentiment deepened. Strong jobs data and trade optimism lifted weekly gains to 2.2% while RSI hovered near overbought.
