Watch These Microsoft Stock Price Levels as Tech Giant Set to Report Earnings

Microsoft (MSFT) shares fell slightly on Monday but remain near a record high as investors await the scheduled release of the company’s quarterly results on Wednesday.

Just as with other Magnificent Seven companies, investors will be seeking updates on the tech giant’s spending plans as the AI arms race among tech rivals intensifies. Last week, Google parent Alphabet (GOOGL) lifted its projected 2025 capital expenditures to $85 billion, up from its prior forecast of $75 billion. 

Microsoft shares slipped 0.2% to close Monday’s session at $512.50. The stock has gained nearly 22% since the start of the year, boosted by strong growth in the company’s Intelligent Cloud segment and successful efforts to integrate AI into its Copilot chatbot and Azure cloud platform.

Below, we break down the technicals on Microsoft’s chart and point out price levels worth watching out for.

Ascending Channel Remains Intact

Since gapping decisively above the 200-day moving average (MA) in early May, Microsoft shares have trended steadily higher within as ascending channel. During this time, the 50-day MA crossed above the 200-day MA to form a bullish golden cross, while the relative strength index has remained near overbought territory to signal strong price momentum.

It’s also worth noting that volatility has fallen sharply in the stock since it bottomed in early April as shown by the average true range percent indicator—a technical tool that signals how much an asset typically moves as a percentage of its price.

Let’s use technical analysis to forecast a potential upside target on Microsoft’s chart if the shares continue trending higher and also identify crucial support levels worth monitoring during future pullbacks in the stock.

Measured Move Upside Price Target

Investors can forecast a potential upside target in the stock by using the measured move technique, also known by chart watchers as the measuring principle.

When applying the analysis to Microsoft’s chart, we calculate the height of the ascending channel from its low to high rounded to the nearest dollar and add that amount to the pattern’s upper trendline. For instance, we add $93 to $527, which projects a target of $620, about 21% above today’s closing price.

Support Levels Worth Monitoring

During pullbacks in the stock, investors should watch for a retest of crucial support around $468. This area on the chart may attract buying interest near last year’s prominent July swing high.

Finally, a decisive close below this level could see Microsoft shares drop to $430. This location finds a confluence of support from the closely watched 200-day MA and a horizontal line that connects a series of corresponding price action on the chart extending back to March last year.

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As of the date this article was written, the author does not own any of the above securities.