Remorseful buyers have kept a top on shares of Microsoft Corporation. They are trying to bail out of their positions, which has formed resistance in the market.
Microsoft had support at $300 as a large number of buyers gathered there. The stock ended up rallying after it fell to it, but now, the price is lower.
Many of the investors who bought the stock while it was at support now regret doing so. A large number of them decide to sell, but they don’t want to take a loss.
As a result, they place their sell orders at the same price they bought their shares at. If there are enough of these sell orders, it forms a resistance level. That’s the case here.
If Microsoft can’t break or trade back above this important level, there’s a good chance a new downtrend forms.