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Microsoft (NASDAQ: MSFT) stock price is starting to recover after experiencing a significant sell-off over the past two weeks. Currently, the stock is trading at $321.88, approaching the $327 level. This upcoming retest will be crucial in determining the stock’s next direction.
In the first half of 2023, Microsoft has been one of the top-performing stocks, with its price soaring by an impressive 65% since the beginning of the year. This surge aligns with a broader recovery in the U.S. stock market, as indices like the NASDAQ 100 and S&P 500 both closed in positive territory on Monday.
Microsoft and Activision are back in the news. Microsoft has made a revised offer to buy the cloud-streaming rights to all current and future Activision games for the next 15 years. This comes after the UK Competition and Markets Authority previously blocked Microsoft’s $75 billion bid to acquire Activision due to concerns about competition.
Earlier in 2023, Microsoft confirmed a $10 billion investment in OpenAI, the creators of ChatGPT. One of the main goals behind this investment was to enhance Microsoft Azure into a leading AI tool. This announcement was a significant factor behind the 65% increase in Microsoft’s stock price during the first half of the year.
Looking at Microsoft’s price chart, the stock fell below the $327 support level at the beginning of August and has remained below it since. The current price is just 1.5% away from retesting this level.
If the stock fails to break above $327 and the bears maintain control, we could see an additional 11.5% correction, bringing the price down to the $281-$292 demand zone, where a bounce might occur. However, for a bullish reversal, the stock needs to reclaim the $327 level as support.