Microsoft’s relative strength index score
Previously, we looked at Microsoft’s (MSFT) stockholder returns and MACD (moving average convergence divergence). In this part, we’ll look at its RSI (relative strength index) score, which is an important indicator of stock being overbought or oversold.
Microsoft’s 14-day RSI score is 61. An RSI score above 70 indicates that a stock has been overbought, whereas an RSI score below 30 suggests that a stock has been oversold. Microsoft’s stock surge has boosted its RSI score to 70, which indicates that Microsoft stock is approaching overbought territory. It’s worth noting that sudden stock price movements can cause RSI scores to falsely signal “sell” or “buy.”
Microsoft’s average true range and volatility
Microsoft’s ATR (average true range) value is ~3.6. ATR is another indicator investors and traders use to determine a stock’s volatility and make decisions based on its risk profile.
Microsoft stock has a beta of ~1.3, indicating that the company’s stock is more volatile than the overall market. Betas, assessments of stocks’ volatility, are often used as market risk indicators. A beta above 1.0 suggests a stock is more volatile than the overall market.