Chart of the Day for Week of January 12 - Microsoft

Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.

Microsoft (MSFT) is one of the most influential technology companies in the world, sitting at the center of enterprise software, cloud computing, artificial intelligence, and global productivity infrastructure.

After an extended rally that carried price to new all-time highs near $555, MSFT has recently pulled back sharply. That raises a critical question traders and investors are asking right now. Is this pullback something to be concerned about for the global tech giant, or is it simply a healthy price action retracement within a dominant long-term trend?

Since May 2023, ChartPros has published 700+ Chart of the Day posts designed to help traders learn how to read price with clarity and confidence. As markets evolve, so should the way we study them.

Starting in January 2026, Chart of the Day transitioned to a weekly format. Each featured chart now includes deeper analysis, clearer structure, and more strategic context.

Fewer charts. More focus.

This week’s Chart of the Day focuses on Microsoft, a stock that continues to command institutional attention while providing a textbook example of structured price action behavior following a strong upside expansion.

Consistent profitable investing and trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and a performance oriented execution environment create the foundation for long-term success.

When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.

As requested, this analysis takes a pure price action technical analysis approach to assess key levels and potential next price moves.

The 5-Step Charting Process in the NeuroTrading Method®

The 5-Step Charting Process in the NeuroTrading Method® is a structured approach to reading price action with clarity and confidence. This process is designed to eliminate guesswork, reduce noise, and support disciplined execution.

1. Identify Support and Resistance (S/R)
Key levels are marked on the Monthly and Weekly charts, working left to right to establish long-term market structure.

2. Assess Trend Structure
Trend direction is evaluated across timeframes to determine whether price is trending, transitioning, or consolidating.

3. Apply Fibonacci Anchoring
Only Fibonacci levels visible on the chart are used, with anchors placed precisely to highlight reaction zones and extensions.

4. Map Change Control Zones and Supply/Demand
Areas where control shifts between buyers and sellers are identified to define decision points.

5. Develop the Trade Plan
Directional bias, levels of interest, risk parameters, and execution criteria are defined before any trade decision is considered.

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Monthly Chart Insights and Analysis 

The monthly chart highlights Microsoft’s powerful multi-year uptrend and the strong expansion that ultimately carried price into the $555 all-time high zone.

Following that upside extension, price has entered a corrective phase. Importantly, this pullback has so far respected major long-term structural levels rather than breaking them. The rising long-term trend line remains intact, and price is currently rotating lower into a well-defined support and Fibonacci decision area.

This is exactly what healthy price action often looks like after an extended advance. Strong trends do not move straight up. They expand, pause, retrace, and then resolve.

From a long-term perspective, only a sustained loss of these higher time frame support levels would materially change the bullish structural bias.

With plenty of volatility traders have had much to be happy with but long term buy and hold investors have been on a roller coaster ride lately.

This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.

Weekly Chart Insights and Analysis 

The weekly chart provides the clearest view of the current decision zone.

After topping near $555, MSFT rolled over and retraced into the $450–$460 region, where multiple technical factors converge. Prior support, Fibonacci retracement levels, and the rising trend structure are all in play here.

This is not a prediction zone. It is a reaction zone.

Bulls want to see stabilization and acceptance above this support area, which would suggest the pullback is corrective rather than destructive. Bears, on the other hand, would need to see continued downside acceptance below these levels to argue for a deeper structural breakdown.

As always, patience and confirmation matter more than anticipation.

It goes without saying though, the only guarantee in the markets is that price cycles.  It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.

Only time will tell for sure what price will do next...

We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.

With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.

Key Takeaway

This weekly Chart of the Day format reflects how successful traders actually operate in a Performance Execution Environment. They do not need more charts. They need better structure, better preparation, and clearer decision frameworks.

Chart of the Day is not going away.
It is leveling up.

So what's next? 

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A ChartPros Briefing on why strategy isn’t the problem and how the right trading environment changes performance. 

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