CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Microsoft share price selloff leaves uptrend intact

Microsoft stock has fallen sharply since February, but with the uptrend intact is a big recovery around the corner?

After hitting a year-high of $187 a share in mid-February, Microsoft shares lost 27% of its value, with the company forced to lower its third quarter (Q3) guidance due to the Covid-19 pandemic interrupting supply chains.

‘As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated,’ the company said.

Microsoft had previously forecast for third-quarter sales of $10.75 billion - $11.15 billion in its More Personal Computing segment.

But despite Microsoft shares falling sharply since February, with the uptrend intact is a big recovery around the corner?

Microsoft: technical analysis

Microsoft has long possessed one of those great stock charts that should be framed as an example of a trend. Since late 2011, the price has steadily climbed, creating higher highs and higher lows and surpassing the peaks of 2000 and 2007.

While the stock has lost around 30% since the beginning of February, this has only put a dent in the ongoing uptrend, potentially providing the first real dip for investors since the end of 2018, according to Chris Beauchamp, chief market analyst at IG.

‘Such substantial dips in the stock price have only been seen several times in the past few years and have been followed up by strong returns,’ he said.

‘A fresh bullish crossover in weekly stochastics would provide the confirmation of a higher low, assuming the broader market does not see a much deeper selloff,’ Beauchamp added.

You can go long or short Microsoft with IG using derivatives like CFDs.

On the hourly chart, rallies were firmly sold throughout March, as was the case on 3, 13 and 20 March. But the price appears to have found a low for the time being, consolidating around $135 and pushing to $155.

For the time being, dips are being bought, as was the case on 26 March, while so far on 30 March the price has also managed to hold its ground around $149. A reversal back below $140 would negate the bullish view, while by contrast further gains above $155 head towards $161 and $175.

Looking to trade Microsoft and other tech stocks? Open a live or demo account with IG today.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly-skilled team are on hand to support you

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.