tech

February 4, 2026

Software stocks are selling off, but this big name may be worth another look, charts show

Software stocks have been suffering as fears of disruption from artificial intelligence rattle the industry, but one name is testing an uptrend line.

Software stocks are selling off, but this big name may be worth another look, charts show

TL;DR

  • Microsoft (MSFT) has fallen roughly 26% from its intraday high in about three months.
  • MSFT is trading about 15% below its 200-day moving average, a level that has previously marked bottoms.
  • The stock's relative weekly RSI compared to the XLK is below 22, a level not seen since May 2003.
  • Despite the sell-off, MSFT remains in a long-term uptrend and is testing a historical bounce point.
  • Short-term risk/reward is improving, with key levels at $408 and $395, and a potential target of $463 if a bounce occurs.
  • The author acknowledges risks but sees opportunities in significant one-sided market moves.

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