Microsoft (MSFT) shares fell in premarket trading on Friday after the tech giant suffered a major cloud services outage, linked to an system update by cybersecurity software firm CrowdStrike (CRWD), that affected banks, airlines, media outlets and companies around the globe.
Below, we’ll take a closer look at Microsoft’s chart and turn to technical analysis to identify important levels that may come into play in upcoming trading sessions.
Microsoft shares have remained in a long-term uptrend since the 50-day moving average (MA) crossed above the 200-day MA in March last year to generate a golden cross buy signal.
However, after climbing to a record high earlier this month, the shares have undergone a retracement of around 6% as investors book gains, potentially rotating some of the profits into small-cap stocks.
If the selling continues, investors should watch four key areas where Microsoft shares may find support.
An initial area to keep …