Is Microsoft stock a buy ahead of results?
29th January 2019 08:39
by Alistair Strang from Trends and Targets
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With Microsoft outperforming tech peers, our technical analyst looks for solid reasons to be optimistic.
Microsoft Corp (NASDAQ:MSFT)
The market is just a day away from Microsoft's (NASDAQ:MSFT) next earnings report (30 Jan 2019) and, thus far, it's looking fairly encouraging. At time of writing, it's trading around $107, needing above $110 to give some optimism as this should prove capable of an initial $115.
Our secondary, if bettered, is perhaps more important as, should Microsoft top $115, it calculates as capable of a new all-time high at a believable $130.
Despite the drops at the end of last December, we're inclined to a degree of optimism here, if only due to the effort made to regain the uptrend since 2017. In fact, were this a UK listed item, we'd suspect the drops to be an effort to trigger stops, along with sell orders, prior to any rise!
Contrary to such a jaundiced view is the important detail the price was not simply spiked downward, it dropped and stayed down for a few sessions. Perhaps it was indeed an early warning of coming trouble.
We'd certainly be alarmed at any reversal now below $100 as this calculates with the potential of a trip to $79 initially with secondary, if broken, down at $70.
If only due to liking Windows 10, we're inclined to suspend distrust and suspect Microsoft shall head upward again! All will be revealed late on Wednesday evening.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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