$MSFT Lags the Market While Another Bear Flag Takes Shape

jfsrevg
04-14

$Microsoft(MSFT)$ — Bear flag breakdown, with further RS divergence as the next bear flag develops

After leading the initial breakdown, $MSFT is forming another bear flag off the March 27 low, with VCP and RS bearish divergence developing even as the broader market rallied.

Price is now sitting on the flattening 10-MA, with a declining 20-MA approaching towards the price.

Market Cap $2.7T | ADR: 2% | Avg $ Volume: $14B

As I wrote on MAR18:

Microsoft has broken below a 7-year trendline support and failed to reclaim it during the early March bounce, despite a 10 vs 20-MA golden cross attempt.

The past 6 weeks of tight, congestive price action have developed into a bearish flag with price is now less than 5% away from its 9-month low.

There are actually multiple mega cap tech chart on the brim a 6/9-month low breakdown, which could amplify any significant downward price acceleration to the market cap weighted ETF charts (eg. $XLK $MGK) due to their heavy weight.

Microsoft Reclaims $400! Can MSFT Recover YTD Losses in Apr?
Microsoft surged to $420. Q3 FY2026 earnings are due April 29, with Azure growth consistency and AI Copilot monetization progress serving as the pivotal valuation re-rating catalysts. With $400 now flipped to support but the $450+ peak still distant, how much further can this pre-earnings recovery extend?
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