MSFT is showing strong bullish momentum on the 4H chart, trading around $531.46 above the 50-period SMA at $505.81. The recovery from the July lows has established a bullish structure, with buyers pushing price toward the $535–$540 resistance area. The key question now is whether buyers can secure a breakout or whether price will pull back to retest support.
The immediate catalyst is the current bullish momentum and sustained recovery above the $500–$510 region. Traders should also monitor Microsoft earnings, company announcements, and broader Nasdaq sentiment for confirmation of the next move.
Key levels to watch:
Resistance: $535–$540
Major supply zone: $550–$560
Near-term support: $520–$525
Key dynamic support: $505–$510
Major structural level: $436.77
Bullish setup
Entry around $520–$525 after a confirmed bullish rejection on the lower timeframe. Alternatively, wait for a 4H close above $540 and a successful retest before entering.
Stop-loss / invalidation
For the pullback setup, place the stop below the confirmed support structure. A decisive 4H close below $505 would weaken the bullish outlook and invalidate this setup.
Take-profit targets:
TP1: $535–$540
TP2: $550
TP3: $560
If buyers defend $520–$525 and reclaim $535–$540, price could extend toward the $550–$560 supply zone. However, rejection around $535–$540 could trigger a pullback toward $520 or the $505–$510 moving-average area.
My preferred approach is to wait for confirmation rather than chase price directly into resistance. The setup remains bullish while price holds above key support, but every entry should be based on confirmation, a defined invalidation level, and a risk-to-reward ratio that justifies the trade.
Not financial advice always DYOR.