Yesterday was Okta (OKTA) – Get the Class A report from Okta, Inc.. Today is Microsoft (MSFT) – Get the Microsoft Corporation report.
On Tuesday, Okta disclosed a possible data breach by hackers that appears to have taken place in January. The news came as cyberattacks are on the rise as geopolitical tensions continue to rise.
Today, Wednesday, Microsoft says these hackers have gained “limited access” to some of its systems.
No client code or data was involved in the LAPSUS$ breach, which actually involved only one compromised account, Microsoft said.
Given the company’s $2.25 trillion market capitalization, that’s not exactly news that should worry long-term investors.
But headlines like this come at a time when tensions are running high amid Russia’s attack on Ukraine and many tech stocks are rooted in ugly setbacks.
At one point, Microsoft stock fell about 2% on news and broader market weakness. The stock has since reduced those losses to less than 1%. Let’s look at the chart to see if there is any clarity.
Scroll to continue
Trading Microsoft Stocks
While Microsoft shares were falling this morning, stocks have been on a strong run lately. As of Wednesday, the stock had rebounded in five of the previous six sessions, climbing more than 10% from last week’s low.
But we are now in an important area of the chart – which makes the reaction to today’s news all the more notable.
Over the past few days, Microsoft stock has hit the 50- and 200-day moving averages, as well as the previous March high near $303 and the big breakout level at $305.
I don’t like to put all my hopes on one level. Instead, I like a confluence of levels and bars. Why? Because it increases the chances that the support or resistance will hold and if not, it indicates the respective strength or weakness of the move.
In the case of Microsoft stocks, I want to see if they can shake off the bad news and eventually erase this week’s high and $305. If so, this opens the door to the $318-$320 area. There it finds prior support and the 61.8% retracement of the correction.
If the $300-$305 area acts as resistance, let’s see if some of the short-term moving averages can support the stock.
Below $290, $283 could be in play, followed by clear support between $270 and $275.
Comments are closed.