Mubasher: The stock of Microsoft Corporation (MSFT) has reached a new historical peak near $553.50 in July 2025, but soon faced severe selling pressure, with the correction extending until February 2026, according to Mubasher Trade Research.

The price is moving within an upward channel, successfully rebounding from the lower limit of the channel, which aligns with a significant support level around $395.

MSFT stock started pre-session trading at around $414, with the nearest resistance for the price is at around $423. Meanwhile, breaking through this level would confirm an improved technical outlook and the return of positive momentum, targeting the $435 - $437 level.

On the other hand, staying above this level may open the door to targeting $446, while a retreat below $409 threatens short-term rebound opportunities.

Price Movement Summary

The MSFT stock started 2025 with a strong downward trend during the first quarter (Q1), where the price dropped from $443 to $343.

After forming this bottom, the stock began to create positive technical signals represented by the formation of higher troughs and peaks, leading to a strong and clear upward wave that continued until July, achieving a historical peak at the level of $553.50, which translates to an increase of more than 60% compared to the beginning of 2025.

Then, the price faced severe selling pressure without changing the main upward trend.

Important Note: This analysis is based solely on the foundations and tools of technical analysis and reflects a purely analytical perspective that may vary depending on the methods of reading and interpretation. What is mentioned in this report should not be considered a direct recommendation to buy or sell, nor an invitation to make any investment decisions; it is for monitoring and study purposes only. Investment decisions are the sole responsibility of the investor based on their financial situation and personal goals.