Microsoft Corporation (NASDAQ:MSFT) was trading slightly higher Wednesday, appearing to work its way back toward the March 14 all-time high of $427.82.
Recently, the technology giant was the top pick amongst investors who answered which stock they would choose to hold over the next 30 years on the r/investing subreddit. Redditors noted Microsoft’s cross-industry dominance, the company's ability to innovate and stability and strong potential for growth as a few of the reasons they’d choose the stock as a long-term hold.
Whether or not Microsoft flies into blue skies over the next few days is likely dependent on how the market reacts after the Federal Reserve releases its March policy statement at 2 p.m. Wednesday.
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The Microsoft Chart: Microsoft began trading in its most recent uptrend on March 6, confirmed on March 14, when the stock formed a higher high. Previous to that, Microsoft had been trading in a horizontal pattern but indicated a new uptrend may form within that formation on March 11, when the stock printed a higher low at the $401.26 level.
- On Wednesday, Microsoft was working to print a doji candlestick, which could indicate the local top has occurred. If that happens and the stock suffers a bearish reaction to the Fed’s news, the uptrend will be negated and a new downtrend could form.
- Bullish traders want to see Microsoft receive a bullish reaction to Wednesday’s event and for the stock to rise up above the March 14 high-of-day. If that occurs, the uptrend will remain intact and Microsoft will have no further resistance above in terms of price history.
- Microsoft has resistance above at $427.82 and at the psychologically important $430 mark and support below at $412.65 and at $398.01.
