Microsoft, good timing to return to buying?Microsoft CorporationBATS:MSFTSwissquoteMicrosoft stock, one of the stars of US tech, has lost more than 35% in the stock market since last summer. The software sector has undergone an unfavorable rotation in the face of the artificial intelligence narrative, and leading companies such as Microsoft, Adobe and SAP have sharply corrected in the market. Is it time to return to buying Microsoft stock from both a fundamental and a technical analysis perspective? To answer this question, I rely on the following analytical elements: • Technical analysis on the weekly timeframe for Microsoft stock • The stock valuation of Microsoft using the following valuation ratios: P/E ratio, P/TB ratio and P/Sales ratio This dual technical and fundamental approach suggests that Microsoft is close to a good timing for a rebound in the stock market, with a major technical support between $310 and $350 and a P/E ratio returning to a 10-year support zone around 20/23. From a technical standpoint, the current area corresponds to a particularly interesting confluence: it combines a former high turned support, a long-term upward trendline, as well as a significant retracement zone of the last bullish cycle. Historically, this type of configuration often provides favorable entry points for medium- and long-term investors, provided that the support holds in the coming weeks. A stabilization followed by a bullish reversal would constitute a clear technical signal. In addition, the chart below shows the daily Japanese candlesticks of the Dow Jones Industrial Index. The market reacted at the major support at 45,000 points, and the medium-term trend remains bullish as long as this technical level is preserved. On the fundamental side, the compression of multiples is notable. The P/E ratio is returning to levels observed during more uncertain market phases, while Microsoft still maintains solid growth, driven by cloud (Azure) and its strategic positioning in artificial intelligence. The P/Sales and P/TB ratios are also following a normalization dynamic, reducing the risk of excessive overvaluation observed in recent years. In summary, Microsoft remains a high-quality stock, with strong visibility on its revenues and margins. The recent correction brings valuations back to more attractive levels, consistent with a major technical support zone. The preferred scenario remains a consolidation phase followed by a rebound, provided that the overall market remains supportive. The chart below shows the daily Japanese candlesticks of the US technology sector index. The underlying trend remains bullish as long as the major support at 4,800 points is preserved. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. If you are a retail investor or lack experience in trading complex financial products, it is advisable to seek professional advice from licensed advisor before making any financial decisions. 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