MSFT LongMicrosoft CorporationBATS:MSFTProSignalaiLooking at the broader market structure on MSFT’s 1H chart, price has been in a clear downtrend since rejecting the $555.45 high, where a Break of Structure (BOS) confirmed bearish continuation. The most recent Change of Character (CHoCH) occurred at $508.6 as price pushed below a short-term higher low, further validating the bearish momentum. This sequence of lower highs and lower lows suggests sellers remain in control until demand proves otherwise. Turning to supply and demand zones, the demand around $500–$505 is relatively strong because buyers previously stepped in with conviction, forcing a multi-day rally. Below that, the broader $485–$490 zone also stands as a strong higher-timeframe demand where buyers defended aggressively in July. On the supply side, the $525–$535 region is clearly heavy; price dropped sharply from this zone on two separate occasions, confirming strong seller presence. The lower supply pockets between $515–$522 appear weaker in comparison, as they didn’t generate as deep of a rejection. Within the marked region, price is currently testing just above the $510 handle, moving directly into the $505–$500 demand area. The reaction here is critical: if buyers step in, a likely bounce could push price back toward $520 and potentially the deeper supply around $530–$535. However, if the $500 level breaks cleanly, the next liquidity grab could drive price into the $487–$490 demand before attempting a recovery. The trade bias at the moment leans cautiously bullish, expecting a demand-driven bounce toward supply, but the invalidation level sits at $499. A sustained break and close below that level would negate the bullish outlook and favor continued downside. Momentum currently favors sellers, given the impulsive move down, but exhaustion wicks at demand could quickly shift sentiment if buyers show presence with strong bullish engulfing or rejection candles.