REDMOND, WA – Microsoft Corp. (MSFT) shares experienced a dramatic reversal on Friday, closing in negative territory after briefly touching a new 52-week high, signaling potential headwinds for the start of next week’s trading.
The tech behemoth closed the session at
1.51 or 0.30%. The day’s trading painted a picture of a classic battle between bulls and bears at a critical price level. Shares opened at
499.30**, matching the stock’s 52-week high.
However, this peak proved to be a powerful resistance point. Sellers stepped in decisively, triggering a sustained sell-off that pushed the stock to an intraday low of $493.03 in the late afternoon. While a modest recovery occurred before the closing bell, the stock was unable to erase the day’s losses.
Adding to the cautious sentiment, after-hours trading showed a further slight decline, with the stock last trading at $495.82.
Market Outlook for Monday:
The price action on Friday provides a significant technical clue for Monday’s potential direction. The failure to break out and hold above the 52-week high is a bearish signal for the short term. This type of rejection often indicates that profit-taking is underway and that sellers are currently in control at this price level.
Key factors pointing to a potentially lower open on Monday include:
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Rejection at Resistance: Hitting a major high and then immediately selling off is a strong sign of seller dominance and could lead to further downward momentum.
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Negative Close: Despite the morning rally, the stock closed below both its opening price and the previous day’s close of $497.45, confirming the bearish reversal.
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Muted After-Hours: The continued slight dip in post-market activity suggests a lack of immediate buying enthusiasm to counteract the day’s decline.
Investors will be closely watching whether Microsoft can find support at lower levels or if it will make another attempt to breach the formidable
500 resistance zone. Barring significant positive news over the weekend, traders should be prepared for a cautious or potentially downward-trending open on Monday.
