My MSFT Trading Journal: Why I'm Buying the Dip
Here’s a trading journal entry for your MSFT trade today.
Trading Journal: August 27, 2025
Stock: Microsoft (MSFT)
My Plan
I was looking at MSFT on the daily chart and saw a few signals that caught my eye. The price is heading towards the lower Bollinger Band, which is around $500, a level that often acts as support.
At the same time, the RSI (Relative Strength Index) is at 30. This usually suggests the stock is getting oversold and could be due for a bounce. The OBV (On-Balance Volume) is in the lower half, confirming there's been selling pressure.
With the current price at $502.04 and the fair value estimate for the stock being somewhere between $600 and $623, this dip looks like a good buying opportunity to me.
My Trades
* I placed my first buy order at $501.50 to get in on the potential bounce.
* The price continued to drop after that, so I decided to add to my position at a better price. I queued a second buy order on another account at $498.
Market News
There wasn't any major news shaking things up, except for a report that Microsoft's contract talks with OpenAI might push back OpenAI's corporate restructuring. This might be creating some short-term uncertainty, contributing to the dip. I don't see it as a long-term problem for the stock.
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