Microsoft Stock at Critical Demand Level. Should You Buy Now?

When I look at Microsoft’s chart right now, I don’t just see a big red candle. I see a story that started months ago with a strong monthly demand imbalance and a patient wait for price to come back to it. That’s the whole idea behind stock supply and demand trading: let price return to the important areas instead of chasing it everywhere.

The Bigger Picture: Monthly Uptrend and Demand

I always begin with the higher timeframe. On Microsoft, the monthly trend has been bullish for a long time. Price has been printing higher swings and leaving fresh demand zones behind as it goes.

One of those zones sits roughly around the 396 area. It formed when Microsoft paused briefly and then exploded higher, leaving a big imbalance between buyers and sellers. That burst away from the zone is my clue that a lot of buy orders were sitting there the last time price visited.

From that moment, my job is simple: wait for price to come back. No predictions, no drama. Just patience.

The Drop Into Demand That Looked Scary

The recent move into that zone came with momentum. Strong bearish candles, negative sentiment, and plenty of “Microsoft is in trouble” headlines floating around. On a lower timeframe, that move feels intense.

But from a supply-and-demand perspective, it’s just price revisiting the last point at which buyers took control. Instead of viewing the selloff as a disaster, I see it as a test of that monthly imbalance. This is where price action trading becomes very clean: I don’t need anything on my chart except candlesticks and the zone itself.

Many traders get lost here. They zoom in too much, try to fight the move both ways, and forget to ask the simple question: “Where did the last strong move start?”

How This Helps You Learn to Trade Stocks

If you want to learn to trade stocks using this kind of logic, focus on three things:

1. Identify the broader direction on the higher timeframe.
2. Find the strong moves away from clean bases – those are your supply and demand imbalances.
3. Wait for price to return and watch how it reacts.

You don’t need extra tools, and you definitely don’t need to react to every headline. The chart already reflects market expectations. Your edge comes from reading that reaction, not from predicting the story behind it.

This same approach can be used whether you prefer longer-term positions or intraday stock trading built around a higher-timeframe structure.

Final Thoughts

The current Microsoft setup is a textbook example of stock supply and demand trading: a strong monthly uptrend, a clear demand imbalance, and a patient wait for price to revisit it.

By focusing on structure, imbalances, and emotion on the chart, you keep your process simple and calm. In my experience, that calmness is what enables you to apply your stock trading strategies consistently over time.