They say that markets have memories. If it’s true, there’s a chance the selloff in Microsoft Corporation (NASDAQ:MSFT) may be about to end or at lease pause.
Market memory refers to how levels that are support or resistance can stay intact and retain their importance for a period of time.
As you can see on the following chart, in May of 2021 the $240 level was support for shares of MSFT. When it fell to this level, buyers put a floor under it and a rally followed.
If the market “remembers” this, there’s a good chance that the same thing happens once again.
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