The worst performer among the "Magnificent Seven"! Microsoft is sliding toward a critical "life-or-death line"
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Glonghui, February 25th|According to CLS, historically, shorting Microsoft stock for the long term has always been considered a "foolish move." So, will this time be any different? Since 2026, Microsoft has become the biggest decliner among the "Magnificent Seven" US stocks. Since reaching a historic closing high of $539.82 on October 28 last year, its share price has fallen by a cumulative 28%, with a sharp drop of 19.4% just this year. This steep decline is pushing Microsoft's stock price close to a key technical indicator—the 200-week moving average. Many technical analysts have recently noted that Microsoft's closing price on Tuesday was only about 3.5% above its 200-week moving average of $375.80. The last time Microsoft's stock closed below the 200-week moving average was back in January 2013. The 200-week moving average roughly reflects the average stock price over the past four years. While it is not uncommon for stock prices to fall below short-term technical indicators (such as daily moving averages) during bearish news cycles, the 200-week moving average often better reveals long-term trend directions. An upward-sloping 200-week moving average typically indicates a long-term bull market, while a downward-sloping 200-week moving average suggests the stock may be entering a prolonged downtrend. Since January 2012, Microsoft's 200-week moving average has never experienced several consecutive weeks of decline. Now, Microsoft's stock price is approaching this critical crossroads. For many technical analysts, the success or failure of its future trend will depend on this—historically, for companies with intact long-term growth narratives facing only temporary setbacks, the 200-week moving average has often served as a support point for the stock price to bottom out and rebound.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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