Microsoft stock: buy or sell

MSFT stock price: $225.95 0.44% At close on Jan 22nd, 2021

Updated on:
Jan 25th, 2021

2

Microsoft stock brief

  • Counting last Friday, it's been 4 consecutive sessions in green for Microsoft. Price closed last Friday at $225.95 after only changing a 0.44%.
  • Microsoft is presenting its earnings report on Tuesday
  • The Goldman Sachs Group published a strong positive rating for Microsoft last Thursday
  • Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

Should I buy Microsoft stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $MSFT stock a buy?

Currently, Microsoft stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it rises rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 2.79% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $232.25. The stop loss would be set at $209.03

Buy setupBuy pointStop lossRisk
ATH buy setup$232.25$209.0310.00%

Should I sell Microsoft stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our feelings or the buzz that surrounds the market. We like very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups should not be used for shorting $MSFT stock

A guiding principle is that you should not hold an operation that leads to higher than expected losses by the time of purchase. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Microsoft stock?

Currently, Microsoft stock doesn't match any of our preferred sell setups, so if you own Microsoft stock and your operation is in profit probably is not time to sell now

Microsoft ratings

In the last month, just one brokerage rating was published for Microsoft

Microsoft analysts' ratings - Last month
Brokerage firmRating
Jan 21st, 2021
The Goldman Sachs Group Strong buy

Microsoft stock analysis

SMAs overview

MSFT stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $227.18 (0.54% above)
  • R2: $227.52 (0.69% above)
  • R3: $232.25 (2.79% above)
  • The current supports are:

  • S1: $224.62 (-0.59% below)
  • S2: $216.55 (-4.16% below)
  • S3: $215.29 (-4.72% below)
  • Bollinger bands

    Since the price broke down the lower band on January 14, the price has bounced off by 6.21%. The price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can move in these levels for many days and weeks

    MSFT stock Bollinger Bands chart

    Relative strength index

    The has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really serving to help us make any decisions.

    MSFT stock RSI chart

    Microsoft stock price history

    Microsoft started trading priced at an adjusted price1 of $0.06 on Mar 1986. Since then, MSFT stock has risen by 376,483.33%, with an average of 11,073.04% per year. If you had invested thousand dollars in Microsoft stock on the IPO, it would have a value of $3,765,833.33 today.

    1: Adjusted price after possible price splits or reverse-splits

    MSFT stock price history chart

    Price target for Microsoft stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.

    Along with buy or sell recommendations, financial institutions release their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new financial data by the company, and many times. If you are a small investor you shouldn't trade based on these predictions.

    We don't have any target price posted in the last month for Microsoft.

    Microsoft stock price predictions
    Brokerage firmPrice target
    Jan 21st, 2021
    The Goldman Sachs Group Not available

    Earnings and financials

    Microsoft ($MSFT) presents Q2 earnings report on Tuesday. Market forecasts of $1.64, compared to previous quarter that was $1.82. Regarding to turn over, the estimations are $40.2 billion.

    In case you are a shareholder of Microsoft stock, you should double check your stop-loss, as financial report release date has higher than usual volatility. Check company's website to confirm time and details about the earnings call and the earnings report.

    Microsoft ($MSFT) had the quarterly financial event and posted the report last October. Microsoft beat consensus earnings estimates and reported of $1.82, that is a 18.18% improvement versus the forecasts of $1.54. In line, reported revenues were $37.2 billion compared to estimates of $35.7 billion.

    Same quarter last year, reported EPS was $1.38, so current EPS means an increase of 31.88%. Looking at sales, figures climbed a 12.40% compared to $330.6B same quarter a year ago.

    Microsoft performance

    MSFT performance compared
    Company1m3m6m
    Microsoft ($MSFT) 1.50% 5.90% 13.30%

    Important note:
    The opinions published in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the individual situations of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for informational motives only

    Microsoft summary

    Friday, January 22nd, 2021
    Open$227.08
    Close$225.95
    Day range$225.8 - $230.07
    Previous close$224.97
    Session gain0.44%
    Average true range$6.39
    50d mov avg$216.53
    100d mov avg$213.81
    200d mov avg$203.70
    Earnings dateJanuary 26th, 2021

    Frequently asked questions

    What is Microsoft stock symbol?

    Microsoft Corporation is a public company trading in the US stock market with the MSFT symbol

    Is Microsoft stock a buy or sell?

    Microsoft had one rating in the last four weeks Read the article to get additional tips on trading MSFT stock.

    Will MSFT go up?

    There were no price targets published by market analysts in the last month for Microsoft.