Microsoft Technical Analysis - Microsoft Trading: 2023-01-26

Technical Analysis Summary Microsoft: Buy

Chart Analysis

The technical analysis of the Microsoft stock price chart on daily timeframe shows #S-MSFT,Daily is rebounding toward the 200-day moving average MA(200) which is declining itself. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 245.04. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the fractal low at 230.56. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (230.56) without reaching the order (245.04), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis of -

Microsoft stock slipped after results of December 2022 quarter. Will the Microsoft stock price retreating continue?

Microsoft on Tuesday reported 2% growth over quarter to $52.7 billion in revenue in the three months ended December 31 while sales at More Personal Computing segment, which includes Windows, devices and search revenue, declined 19% to $14.2 billion as the PC market continued to shrink. The Q2 revenue is slightly lower than the average analyst estimate of $52.94 billion according to IBES. And net income fell 12% to $16.4 billion. At the same time the revenue from Microsoft's cloud service Azure rose 31% in the second quarter , ending 2022 with 30% share in the cloud computing market, up from 20% in 2018, while Amazon Web Services share in that market dropped to 55% from 71% during the same period, according to estimates from Bank of America. Stock price closed 0.59% lower on the day after the report.