Technical analysis from FOREX.com suggests Microsoft stock (MSFT) faces a potential downturn. A double top pattern, considered a bearish indicator, has formed on the stock’s monthly chart at record high levels.
This pattern follows two previous signals of weakness. In prior months, the chart displayed a "shooting star" reversal and a bearish engulfing candle.
A break below Microsoft's 2024 high would trigger a more significant pullback for the shares.
Given the company’s substantial influence on the Nasdaq 100, any notable decline could raise broader concerns for the technology sector. No market reaction to this specific analysis was immediately available.