Microsoft: resistance breakthrough?

Microsoft: resistance breakthrough?

2021-01-26 • Updated

Microsoft is about to report its quarterly earnings on January 27, at 00:30 MT time.

The expected EPS is $1.61 against $1.51 for Q4’2019. Apart from total revenue and other general indicators, that’s the main figure most investors will be looking at. What does its stock performance look like?

Tactically, it’s been trading under the resistance of $230 since August. While the local lows have been gradually moving upwards in line with the 50-MA and 100-MA, the resistance hasn’t. That suggests the accumulation of bullish potential that would eventually break the resistance of $230. The question is when. Technically, the “logic of the triangle” still requires one or two downswings before the flat upper side gets broken. However, if Microsoft reports good Q4’2020 results that beat the market expectations, there is a high likelihood that the price will go above $230.

MICROSOFTDaily1.png

Strategically, while the overall trajectory of the price performance is definitely an upward curve, every now and then it gets down to dip into the 50-MA. Currently, it is considerably above the Moving Average. That begs the question: will it dip again? Very possibly, and it has nothing to do with the quarterly report. The stock may break the resistance of $230 and then plunge, or just plunge. The thing is, the growth of a stock value is like a machine engine: it gets overheated by the constant expansion and needs to cool off sometimes. That may not happens in months from now – or, it may happen quite soon. Watch for the signs of reversals and look into the details of the quarterly report.

MICROSOFTWeekly.png

Don't know how to trade stocks? Here are some simple steps.

  1. First of all, be sure you’ve downloaded Metatrader 5.FBS allows you to trade stocks only through this software.
  2. Open the MT5 account in your personal area.
  3. Reveal all trading instruments by clicking “show all” at the “Market Watch” window.
  4. Start trading!

                                                                                                    LOG IN

Similar

Best Stocks to Buy in April! 
Best Stocks to Buy in April! 

As April approaches, investors are searching for good opportunities in the stock market. There are two booming industries that look positive in the coming period; electric vehicle (EV) stocks and banking stocks.

Why did the US markets recover?
Why did the US markets recover?

There’s nothing new in markets witnessing sharp crashes and volatility when geopolitical events happen. The initial and immediate reaction to these events is usually the most dramatic.

Latest news

Walmart earnings outlook
Walmart earnings outlook

Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera