Microsoft stock hits record highs despite overbought RSI and Powell hawkish signals

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Sholanke Dele

25.06.2025

Microsoft stock hits record highs despite overbought RSI and Powell hawkish signals — Microsoft hits fresh all-time high at $492

Microsoft stock climbed to fresh all-time highs this week, rising 1.2% on Tuesday to reach $492 per share.

The rally continued into Wednesday’s premarket session, where the stock added another 0.2%, trading near Tuesday’s close of $490.1. This latest move has pushed Microsoft’s market capitalization past $3.6 trillion, reinforcing its leadership in the tech space.

- Microsoft hits fresh all-time high at $492 despite hawkish Fed tone

- RSI stays overbought since May but price keeps rising

- Microsoft Market cap surpasses $3.6 trillion amid geopolitical tension

The uptrend started earlier in the week after price rebounded from the $473.3 support level. From there, buyers stepped in strongly, helped by improving sentiment from the ceasefire agreement between Israel and Iran. That development eased geopolitical tension and encouraged “risk on” positioning across markets, particularly in technology stocks. Microsoft, being a market heavyweight, was among the biggest beneficiaries.

Microsoft stock price dynamics (May - June 2025). Source: TradingView

Even as Federal Reserve Chair Jerome Powell pushed back on expectations for near-term rate cuts, Microsoft’s stock showed resilience. The fact that price action remained strong despite hawkish commentary from the Fed suggests that investors are focused on growth momentum and earnings potential rather than short-term policy shifts.

Microsoft volume eases slightly from Monday but remains strong

Technically, one of the more striking features is the behavior of the Relative Strength Index on the daily chart. The RSI has been in overbought territory since May, typically a warning signal of overheating. However, the stock has continued to push higher, defying expectations of a pullback. Adding to this, there have been reports of insider selling from company executives, yet it has not slowed the upward trend. This signals broad-based investor confidence in Microsoft's long-term outlook.

Trading volume on Tuesday came in lower than Monday’s but still exceeded the monthly average, indicating sustained interest. In addition, the easing of Middle East tensions could fuel growth optimism through the summer. As negotiations replace conflict, markets are beginning to price in a calmer outlook that may favor further capital inflows into tech.

If current momentum holds, Microsoft could reach $495 per share later today. The continuation of this rally, even in overbought conditions, highlights the strength of buyer conviction and the market’s broader appetite for quality tech names. For now, all eyes remain on whether this breakout attracts even more volume or pauses near current highs.

Microsoft stock hit a new all-time high at $481 as investors focused on macro strength and AI prospects. Price stayed supported above the 50 EMA as buyers defended higher lows.

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