Microsoft Stock Forecast: Bullish Breakout Puts $555 in Focus

Breakout Potential Emerges as Consolidation Tightens

Taken together, MSFT continues to show technical strength that suggests an eventual breakout from consolidation and continuation of the bullish trend. The point is that MSFT continues to show technical strength the suggests an eventually breakout of consolidation and continuation of the bullish trend, initially toward the prior high of $555.45, followed by a 127.2% Fibonacci extension of the recent decline at $609.35.

Despite the potential for near-term continuation, resistance may hold near the top of consolidation, which could lead to another decline to test support near the rising lower boundary of the pattern, before another upside breakout attempt. That would keep the pattern of higher sequential support levels intact and preserve the improving underlying demand that has defined the consolidation.