The 06/07/25 blog “The Strongest Magnificent Seven Stock” noted that at that time Microsoft (MSFT) was the only one of the “Magnificent Seven” stocks to make a new all-time high. Since then, there have been other “Magnificent Seven” to make new all-time highs. However, for the week ending 08/2/25 only Alphabet Inc. (GOOG) reached a new all-time high.
Current momentum signals for MSFT are very bearish implying downside action in the coming weeks.
The weekly MSFT chart courtesy of Trading View illustrates its current position.
The 06/07/25 blog noted “The weight of evidence from the weekly momentum oscillators indicate MSFT could continue to rally”.
At that time the weekly MACD lines and Histogram were still rising implying more upside action. Going into MSFT’s all-time high Histogram had a bearish divergence. So far, no bearish signal from the lines.
The 06/07/25 blog also noted “Weekly Stochastic has flattened out in the overbought zone, however this flattening could continue for several weeks before a downturn occurs”.
The weekly Stochastic did continue flat for several weeks and has subsequently had a bearish line cross.
In early June 2025 weekly RSI had a double bearish divergence. Since then, Weekly RSI moved back into the overbought zone and at MSFT all – time high and had a bearish divergence vs. the February 2024 reading – not shown on the current chart. Subsequently RSI has crossed below its moving average line.
From the price point of view MSFT has broken below the rising trendline from March to July 2025.
The weight of evidence suggests that in few weeks MSFT could reach at least 445 to 430.
For many years MSFT has been a leading U.S. stock. Its recent bearish action during a seasonally bearish time – August to October is another warning sign for the U.S. stock market.
Four Dimension Trading 