Microsoft clears $450 as buying momentum buildsMicrosoft CorporationBATS:MSFTFOREXcomThe buying bias around Microsoft has started to gain relevance after the company’s earnings results. Earnings per share came in at 4.74 dollars, above the 4.24 dollars expected, while revenue slightly exceeded 90 billion dollars, compared with the 87 billion dollars estimated. These results have strengthened confidence in the company’s financial stability and growth potential. Unlike other companies in the sector, Microsoft still manages to maintain stable margins, which has helped support appetite for the stock. So far, the stock has advanced more than 15% since the earnings release, marking one of its most relevant gains in recent years. For this reason, the current buying pressure could remain important over the next few trading sessions. Long bearish trend line enters a risk zone: Over the last few months, Microsoft shares had maintained a relevant bearish trend line. However, the recent recovery has already pushed price above this structure, showing important bullish strength. If price manages to hold above this trend line, it could open room for a more consistent buying bias or a more stable neutral phase over the coming weeks. In this scenario, the bearish line would stop being the dominant structure on the chart in the short term. MACD: At the moment, the MACD histogram remains above the neutral 0 level, suggesting that bullish strength has started to become relevant in short-term moving averages. If this dynamic continues, the indicator could keep supporting a buying bias on the chart over the next few sessions. RSI: A similar dynamic can be seen in the RSI, with the indicator remaining above the neutral 50 level, reflecting dominance of buying momentum. However, the indicator has also started to move above the 70 area, which corresponds to overbought levels. This suggests that there could be an excess of recent buying strength, opening room for possible short-term corrections. Key levels to watch: • 466 dollars – Relevant resistance: This previous monthly high area is the main bullish barrier to watch. Price movements above this level could reaffirm the dominance of the buying bias in the medium term and open room for a structural shift toward a possible bullish trend line. • 427 dollars – Near-term barrier: This relevant retracement area coincides with the 200-period moving average and the most important 38.2% Fibonacci retracement on the chart. This level could act as the main tentative barrier in the event of possible bearish corrections over the next few sessions. • 400 dollars – Psychological support: This relevant psychological level aligns with the 50-period moving average and the 23.6% Fibonacci retracement. Price movements toward this area could bring the selling bias back into focus and keep some relevance for the bearish trend line seen over the last few months. Written by Julian Pineda, CFA, CMT – Market Analyst