Will Microsoft shares see new all-time highs before the year's end? Wall Street has an average 12-month price target of $496

Microsoft's share price has drawn significant attention as it trades near levels seen back in March. After reaching a peak of $469 in July, the tech giant's stock experienced an 18% sell-off before stabilizing. Currently, Microsoft's shares are trading around $435.27 in the pre-market, showing a slight uptick of 0.9%, and there are signs that the stock may head toward a bullish phase.

Consolidation Phase and Price Action

The weekly chart reveals a period of consolidation between August and now. Earlier concerns about a head and shoulders pattern forming in October and early November had raised investor caution. However, the stock has avoided a breakdown, instead moving sideways and affirming the strength of its supportive baseline.

This consolidation, combined with improving technical indicators, suggests that Microsoft shares could see additional upside heading into the end of 2024 and Q1 of 2025.

Key Resistance and Support Levels

• Upside Resistance: The next major resistance zone lies between $442 and $444. A break above this level could set the stage for a re-test of the all-time high at $469.
• Downside Support: Clear support levels exist at $405, $397, and $388. A breach below $388 could trigger intensified selling, with potential declines toward the $350-$370 range.

Technical Indicators Signal Bullish Momentum

Technical indicators are increasingly pointing to bullish momentum:

• The MACD has emerged from oversold territory and is curling upwards, signaling potential upward momentum.
• The RSI and Stochastic Oscillator are also trending higher, suggesting renewed buying interest.

Outlook for Microsoft Stock

With the supportive baseline holding firm and key technical indicators improving, Microsoft's share price appears poised for a potential breakout. Traders should monitor the resistance at $442-$444, as a move above this range could open the door to record highs. Conversely, keeping an eye on the $388 support level is crucial, as a drop below it could lead to further selling pressure.

Conclusion: Microsoft’s stock may see a bullish resurgence as the year ends, backed by strong technical signals and resilient support levels. Investors and traders should prepare for potential price action in either direction, with Q1 2025 likely holding more opportunities for growth.