After a strong few weeks, shares in Microsoft have rallied into what has the potential to be a significant barrier to price. Firstly, note the 161.8% Fibonacci extension of the range AB in figure 1.
This coincides closely with the 261.8% extension level of another range, XY. Taken together, the confluence of two significant extension levels typically has the power to trigger a reversal of some degree in price. The case for anticipating a bearish reaction from here is strengthened by the R1 level from the floor traders pivot points, which also coincides closely with the extension levels.
Now consider the RSI, shown below in figure 1. It has just tested an important overbought level around 70 which has historically correlated with peaks in price. With the RSI and price both encountering significant resistance simultaneously, it would not be at all surprising to see a correction or consolidation unfold over the coming days.