According to this this article over on MarketWatch, Microsoft is in talks to make an investment in Facebook. The rumored deal values the online social networking firm at $10 billion or more, according to Monday's edition of The Wall Street Journal. Reportedly, MSFT proposed an investment in Facebook that would grant it a stake of as much as 5%, which is worth between $300 million and $500 million. According to the report, Google is also interested in Facebook.

This news sent MSFT nearly 2% higher on the day, but the shares were again capped near the 29.50 level. The stock does enjoy the support of its 10-day and 20-day trendlines but backed away from resistance at its 20-week moving average. MSFT has not closed a week above this trendline since the week ending July 20.