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Microsoft Corporation (MSFT) shares are trading slightly lower Thursday, although Jefferies analyst Brent Thill raised the price target on the stock to $400 from $375 and kept a Buy rating on the shares. This price target implies a 26.7% upside. Microsoft was down 0.014% at $315.94 at publication Thursday. 

Microsoft Daily Chart Analysis

Shares recently broke out of what traders call an ascending triangle pattern and look to be consolidating above the resistance area. Resistance was previously found near the $305 level, but this area may now become support.

The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue). This indicates the stock is in a period of consolidation. The 50-day moving average may act as an area of resistance, while the 200-day moving average may hold as support.

The Relative Strength Index (RSI) has been falling the past couple of months and it now sits at 37. This shows that more and more sellers have been moving into the stock the past couple of months, and now there are more sellers in the market than there are buyers.

What’s Next for Microsoft?

Microsoft looks to be consolidating above the $305 price level and trying to hold this level as support now. If this area can hold as support and the price doesn’t dip below again, it may show Microsoft shares are ready to go on another bullish run.

This is exactly what bulls trading the stock are looking for, as well as a cross-back above the 50-day moving average. Bears are looking to see the price fall below the $305 level and continue to fall lower, breaking below the higher low trendline.