Microsoft (NASDAQ: MSFT) stock price is showing some recovery after a strong sell-off in the last two weeks. The tech giant stock is trading at $321.88 as it makes its way to the $327 level to confirm the breakdown. This will be a critical retest.
Microsoft has become one of the best-performing stocks in the first half of 2023. The stock price of the multi-trillion-dollar company has surged by an incredible 65% since the start of the year. The US Stock market is showing some signs of recovery as indices like NASDAQ100 and S&P500 closed Monday in the green.
Microsoft Files Again For Activision Takeover
Microsoft and Activision have been making headlines once again. The tech giant has offered only to buy the cloud-streaming rights to all current and future Activision games released for the next 15 years in a revised proposal. Previously, the UK Competition and Markets Authority had denied Microsoft a $75 billion offer to buy Activision over competition concerns.
At the start of 2023, Microsoft confirmed the investment of around $10 billion into OpenAI, the creators of ChatGPT. Microsoft listed its aim to develop Microsoft Azure into a powerful AI tool as one of the reasons for the investment. This news acted as a catalyst for the 65% increase in Microsoft stock price during the first half of 2023.
Microsoft Stock Price To Retest $327 Key Level
The price chart for NASDAQ: MSFT shows the price broke below the $327 support level at the start of August and has been trading below ever since. Currently, the price is only 1.5% away from retesting the $327 level.
If the bears remain successful in keeping the price below $327, I expect another 11.5% correction all the way to the $281-$292 demand zone. A bounce can be expected from that level. However, for a bullish reversal, the stock needs to flip the $327 level into support.
In the meantime, I’ll keep sharing the updated easyJet forecast and my personal trades on my Twitter, where you are welcome to follow me.
