On Friday, 31 May, almost 48 million Microsoft shares were traded on the NASDAQ – the highest number since the start of 2024. Meanwhile, the MSFT price chart formed a “hammer” candle:

→ trading opened at $416.75 per MSFT share;
→ mid-session, the price dropped below $406;
→ however, by the end of trading, the price had recovered to $415.13.

Fundamentally, it is difficult to pinpoint a single piece of news that served as the bullish driver. According to Barron's, a significant incentive for investing in MSFT shares should be considered the prospect of high dividend payouts.

From the perspective of MSFT chart technical analysis, the price action can be interpreted as evidence of demand absorbing all selling pressure:

→ the share price is within an ascending channel;
→ having dropped to the $406 level, the price pierced the $406.40 support from 8 May – this likely triggered mass activation of buyers' stop-losses and led to a shift in the balance of buyers and sellers;
→ in the pre-market today, the MSFT price is around the median – thus, it can be assumed that the market will consolidate at the beginning of the week. If Friday's bullish momentum continues, the price may encounter resistance around the bearish gap at $424 per MSFT share.

A crucial driver for the price of MSFT and other market leaders in the near future will be the upcoming Fed meeting on interest rates, scheduled for Wednesday, 12 June.

According to TipRanks, the average forecasted price of MSFT shares in 12 months is $491.90 (+18.49% from current levels).

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