It's been a challenging year for Microsoft's ( MSFT) shareholders. In the last 12 months, the software giant has shed around 8% of its value, prompting the stock to top hedge funds' most-hated list. But now, there's a glimmer of hope for MSFT. >>5 Toxic Stocks That Are Poisoning Your Portfolio That's because this stock is currently consolidating in a horizontal trading range called a rectangle. The pattern is formed by a horizontal resistance and support level, at $28 and $26.50 respectively. It's best to think of a rectangle like an "if/then trade": If shares of MSFT break above resistance, then it's time to buy shares. If they slide below support, then it's time to short. There's no trade until one of those conditions is met. Momentum adds some evidence that a move to the upside is more likely for Microsoft right now. 14-day RSI has been in an uptrend since this stock started consolidating. Since RSI is a leading indicator of price, that bodes well for this beaten-down name. Still, don't be a buyer until that $28 resistance level gets taken out.