By 
Microsoft’s share price took a hit early in Thursday’s trading as tech stocks faced a heavy sell-off. However, positive news from Microsoft helped restore some investor confidence. The stock recovered much of its earlier losses by the end of the day.
Microsoft announced a new partnership with Bosch to create a software platform that will connect vehicles to the cloud. Bosch will integrate its software into Microsoft’s Azure, which will help develop and deploy software for vehicle components and electronic control units. Prototypes are expected to be available by late 2021.
Despite the announcement, Microsoft’s share price ended the day down by 0.17%.
Currently, Microsoft’s stock is in the midst of a rounding top pattern and is about to test the pattern’s arc. If the stock pulls back from this arc, it will likely retest the neckline of the pattern at $240.81. A drop below this level could push the price towards the January 28 low of $235.09, with additional targets at $231.89 and $229.66. Reaching the lowest target would complete the pattern’s projected move.
On the other hand, if the stock breaks above the rounding top’s arc, it could challenge the $246.13 high and potentially set new highs at $249.56, $254.41, or $257.29.