Schwab Network on $MSFT (Nov 6, 2026)

And you have another cloud computing giant here today. You have Microsoft as your third choice among the Big Three companies. Is this another game of resilience where we didn't see them heavily affected in yesterday's tech stock sell-off?

Hello, you're always one step ahead of me, Marley. But yes, I mean it's almost the same idea. Learn, when it comes to Amazon reviews. Now, it is clear that Microsoft is not a retail company, but a cloud computing giant with a massive infrastructure.

What I like about this, especially from a technical standpoint, is looking at the chart for one year on a one-day basis; Microsoft's performance has been inconsistent this year.

In fact, the stock has seen significant selling pressure, as well as jumps. But if you look at the far left of the chart, even after yesterday, after the election, and after all the news flow we 've seen, the stock is still high, and recently set new 52-week highs.

But if you go back a year, the stock is still high on an annual basis, and has fallen back to the $530 level, the previous breakout level, to almost return to the levels at the beginning of the year in the early fifties .

I mean, anyone who traded this stock during the past year, if they bought during that period , is theoretically in a winning position as long as the stock remains above these levels.

But if it breaks below the lower 500 levels, the idea becomes invalid. We always respect the chart, as I constantly say, but I'm just looking at the fact that the stock fell sharply yesterday, and despite all the chaos this year at Microsoft, the stock is still high when you look at the yearly chart.

And if things eventually change towards the end of the year and even into 2027, as I mentioned in the opening statement, I believe this sets the stock up for further gains .

Well, there's potential for further upside, and we're watching the 500 level as a minimum here, Rick. In technical analysis, what catches your attention here, and do you also see the importance of the lower 500 levels as a potential area that the stock might break downwards?

Yes, the level I'm specifically focusing on here is 504. The reason is that it has been a notable low level recently. It was also the lowest level we recorded after the earnings announcement in late October here.

So, this is the most prominent level for me, but I would also say that 485 was another low level, and the level after the price gap was also at 475. Price gaps are useful for this reason, because they often indicate some kind of fundamental change in the stock price here.

Yes, we can also see another gap that has formed here. This is the level at which we have reached our lowest point so far, 523. A good example of what I am talking about is that the gap has been closed, and now the price appears to be getting a slight bounce.

We can also observe this triangular shape here in our price movement. We have already broken upwards and reached these new highs near 559. Now, it looks like after a slight pullback, we may break through that trend line again.

So, an interesting development here as well . Another gap here, sorry, the initial low point of the gap has been broken here. So now the 542 level stands out, our red line there, as a sign that must be crossed upwards.

Another peak here near 552. When we think about the moving averages now, we are crossing over our two shortest averages, the 5-day and 21-day ones in dark blue and turquoise respectively.

Therefore, we may see those levels turn into potential support. Especially the 5-day moving average, as it aligns with our trend line at approximately the 535 level. The Relative Strength Index (RSI) has not yet cooperated with us .

We are above the 50 midline, but we have not succeeded in breaking through the downtrend line here . Regarding the size profile here, we have a smaller node between 525 and 536.

Our largest node here, which is much larger than anything else we see near our current activity, is located between 475 and 510. So, watch these areas as potential support levels.

Good. We are now at the 538.19 level. We are up by 4 tenths of a percent. So, in line with the rest of the market, perhaps with slightly lower gains here.