Microsoft stock: buy or sell

Microsoft stock brief

• Microsoft inched a 1.23% after hitting new all-time highs on Monday
• The stock is configuring an uptrend pattern since September 2020, when it bottomed at $194.84. Up to date, the uptrend marked a 34.79% gain since the beginning of this rally. On Monday Microsoft broke out above $262.58 giving an entry point
• UBS Group posted a strong bullish rating for Microsoft on Tuesday, targeting $300.00
• On Monday broke out above its latest top at $262.58
• The price is currently higher than the upper Bollinger band, which often indicates a short-term correction
• Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

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 impetuous decisions based on our sentiments or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies should not be used for shorting $MSFT stock

A guiding principle is that you must never keep an operation that shows a greater losses than those expected by the time of the buy. The timing to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Microsoft stock analysis

Microsoft shares started an uptrend in September 2020, and grew a gorgeous 34.79%. The price line shows higher highs and higher troughs, and along the way provided some entry points for those who wanted to trade in. Latest pullback was in mid-May, when price bounced at $237.52. Microsoft broke out above $262.58 (its last top) on Monday. That breakout was a good buying opportunity

$MSFT at Highs

On Monday, Microsoft hit new all-time highs (ATH) again at $263.52. Previous highs were last April

SMAs overview

Supports and resistances

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

Bollinger bands

Price levels above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme upward or downward values. For this case, the price is over the upper band, which should mean a possible near-term adjustment (at least) until it is under the band

Relative strength index

The RSI dropped below the overbought level of 70 last April after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Monday was 65.23. Microsoft shares only changed a 0.96% since then

Microsoft stock price history

Microsoft started trading on Mar 13th, 1986 at $0.06 per share¹. Since then, MSFT stock surged by 437,616.67%, with an average of 12,503.33% per year. If you had invested thousand dollars in Microsoft stock on Mar 1986, it would worth $4,377,166.67 today.

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

Earnings and financials

Shareholders call was hosted by Microsoft ($MSFT) last April after releasing the financial report. Microsoft topped analysts estimates and reported of $1.95, that is a 9.55% improvement versus the previous predictions of $1.78. Even so, reported revenues of $41.7 billion were in line with market predictions.

Microsoft ($MSFT) will host the Q4 earnings call mid next July. Wall Street analysts forecast of $1.90, that is a 2.56% less than Q3.

Microsoft competitors

Microsoft belongs to the Software - Infrastructure industry, where it has industry peers.

Microsoft main competitors are:

¹ In the last 30 days.

Microsoft performance

To better understand Microsoft performance you must compare its gains with other related stocks in same sector or industry.. For Microsoft, the benchmark is made against Apple, Google, Cisco Systems, SAP SE ADS, IBM and HP.