MSFT - Entering Critical Support Zone

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MSFT - Entering Critical Support ZoneMicrosoft CorporationBATS:MSFTVIAQUANTMicrosoft continues to be one of the weakest stocks in the market since I outlined the double top in late November 2025. The actual double top formed in October 2025, but the reason I waited until November to make this conclusion was that the monthly doji needed a confirmation candle before calling the top with conviction. That confirmation came with November's monthly close, and since then price has declined 36% from the high. MSFT is now entering what I consider the most critical support zone on the chart ($340–$370 range). This zone marked a series of past tops that flipped into new support during the April 2025 crash, and price is now revisiting it. If bulls are able to hold here it would be a tremendous sign, as the weekly RSI could even print a hidden bullish divergence at this level. However, the weekly RSI is telling a concerning story on the macro. Three consecutive higher highs in price (red arrows) have been accompanied by three consecutive lower highs on the RSI (red arrows). This is a textbook bearish divergence that has been signaling underlying weakness in the overall trend for quite some time. There is one indicator that may be giving the most significant early warning sign of all, one that suggests price could revisit the $200 level (with a key 1.618 breakdown target around $214). That warning sign is the 200 EMA on the weekly timeframe. This level has not seen a weekly close below it since November 2012. I outlined this level as support just a few weeks ago when price was still holding above it: That has now changed and price is decisively closing below it. While it is possible for price to rebound and retest the 200 EMA as new resistance, this break most certainly signals that MSFT is entering a much longer bear market. If that is the case, the macro green box of buying pressure that bulls need to hold is likely to be lost as well. Adding to the concern, even the lower timeframe support has been broken. At the time of my last post price was holding the green trendline. If you click play on that chart, you can see exactly how price broke below it, retested it as new resistance, and has been collapsing ever since.