Microsoft's Golden Cross Ignites Breakout Rally - But Is A Cooldown Coming?

Core Viewpoint - Microsoft Corp has achieved a Golden Cross, indicating a long-term bullish trend, with the stock hitting a record high of $478.78 after a three-month gain of 23% [1][2]. Technical Analysis - The stock price is significantly above its five, 20, and 50-day exponential moving averages, signaling strong bullish momentum, with the current share price at $477.32 [2]. - The Moving Average Convergence Divergence (MACD) is at 12.80, showing a recent bullish crossover, although the momentum may be softening as indicated by a decline in MACD histogram bars [3]. - The Relative Strength Index (RSI) is at 76.77, suggesting that the stock is in overbought territory [3]. Fundamental Strength - Microsoft reported a 16.5% surge in third-quarter earnings, with revenue and earnings per share exceeding expectations, driven by the Intelligent Cloud segment and Azure's AI capabilities [3]. - The company announced a quarterly dividend of $0.83 per share, reflecting financial confidence [4]. Market Position and Outlook - Analysts have set an average target price for Microsoft as high as $517.93, supported by strong enterprise adoption of products like Copilot and growth in Microsoft 365 [4]. - Despite the bullish trend, there are indications of potential short-term dips due to overbought conditions, but the long-term outlook remains positive [5].