Microsoft (MSFT) shares surged in prolonged buying and selling Wednesday after the Home windows maker issued fiscal third-quarter results and guidance that topped Wall Street’s expectations. boosted by sturdy development in its cloud enterprise.

CEO Satya Nadella stated the corporate’s Clever Cloud section, which homes its Azure cloud computing platform, continues to profit from companies’ have to broaden output, cut back prices and speed up development, including that Microsoft continues to innovate throughout its AI stack.

Whereas Microsoft shares have risen 15% from their April low, they continue to be down 6% because the begin of the 12 months as of Wednesday’s shut. Like different large tech names, issues about sweeping tariffs and a discount in AI spending proceed to weigh on investor sentiment.

Microsoft shares rose almost 7% to round $423 in after-hours buying and selling.

Beneath, we take a better have a look at Microsoft’s chart and use technical analysis to establish key value ranges price watching.

Profitable Falling Wedge Retest 

Following a profitable retest of the highest trendline of a falling wedge sample, Microsoft shares staged a pointy transfer larger main into the tech big’s incomes’s report, probably setting the stage for a longer-term bullish reversal.

It’s additionally price noting that the shares on Wednesday registered their highest trading volume in three weeks, suggesting that bigger market members, resembling institutional investors and hedge funds, had positioned for a big post-earnings transfer.

Let’s analyze Microsoft’s chart to establish two key overhead areas to observe, whereas additionally stating essential support levels price monitoring throughout future retracements.

Key Overhead Areas to Watch

The primary overhead space to observe sits at round $442. This degree might present resistance close to a trendline that roughly hyperlinks a number of peaks that shaped on the chart between September and January.

A decisive shut above this degree may see Microsoft shares make a transfer up towards the $468 space. Traders who’ve accumulated shares at lower cost might search for profit-taking alternatives on this location close to the inventory’s record high set in July final 12 months.

Essential Help Ranges Price Monitoring

Throughout future retracements within the inventory, it’s price monitoring the $395 degree close to Wednesday’s closing value. This space on the chart has supplied promoting stress over the past month across the late March countertrend excessive and mid-April peak following the inventory’s preliminary breakout from the falling wedge sample.

Lastly, a deeper pullback may see Microsoft shares revisit decrease assist round $359. Traders might search shopping for alternatives on this area close to final week’s trough located simply above this month’s important swing low.

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As of the date this text was written, the creator doesn’t personal any of the above securities.