Shares of software giant Microsoft ( MSFT) have been weak in recent weeks. Prices made a low in June and then bounced back into the middle of August but the price gains have been evaporating and more sell signals have been flashed. Let's shut down and restart the charts and indicators. 
In this updated daily bar chart of MSFT, below, we can see that prices failed right at the underside of the declining 200-day moving average line (MSFT traders are definitely using technical analysis). MSFT has pulled back below the 50-day moving average line.
The On-Balance-Volume (OBV) line has given back its June-August advance and is flirting with new lows. The Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line for an outright sell signal.
In this weekly Japanese candlestick chart of MSFT, below, we can see some lower shadows below $255 but that may not be sufficient "support" to prevent MSFT from sinking lower. The slope of the 40-week moving average line is negative and like the daily chart above we can see how prices failed at the underside of this key indicator.
The OBV line has been on defense since November. The MACD oscillator is below the zero line and narrowing - not a good combination.
In this daily Point and Figure chart of MSFT, below, we can see an upside price target in the $375 area but a trade at $244 is likely to turn the picture bearish.
In this weekly Point and Figure chart of MSFT, below, we can see a price target of $383 but weakness below $244 will negate that potential strength.
Bottom line strategy: For years MSFT displayed upside leadership but unfortunately the leadership is now to the downside. Avoid the long side of MSFT for now.
(Microsoft is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells MSFT? Learn more now.)
