tech

January 29, 2026

Microsoft is testing a major technical level after its post-earnings plunge

Jay Woods of Freedom Capital Markets takes a look at the Microsoft charts.

Microsoft is testing a major technical level after its post-earnings plunge

TL;DR

  • The 200-day moving average is a key indicator of stock health.
  • Microsoft (MSFT) stock has fallen below its 200-day moving average, indicating potential technical weakness.
  • Key support levels for Microsoft are around $425, coinciding with a prior earnings gap and Fibonacci retracement.
  • A short-term trading opportunity exists for a relief rally to $450 if the $425 support holds.
  • A break below $425 could lead to a decline towards $400.
  • Longer-term, the $425 level represents a critical support area on a five-year chart.
  • The stock is nearing oversold territory on its RSI, suggesting potential for a longer-term bounce.
  • Analyst downgrades are expected for Microsoft, with an average target price of $611.

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