Microsoft technical and fundamental analysis
**Microsoft Earnings on Tuesday: Will the Giant Lead Rebound?**
Microsoft is set to report fiscal fourth-quarter earnings after the closing bell Tuesday, July 30. The tech giant is projected to report revenue of $64.37 billion, according to estimates compiled by Visible Alpha, representing a 14.6% rise over the year-ago period. Net income is expected to come in at $21.88 billion, or $2.93 per share, a 9.3% increase from the final quarter of fiscal 2023. My insight about potential earnings beats due to Apple paying license fees and increased usage of Microsoft Office integrated with ChatGPT could indeed contribute positively.
### Technical Analysis
**Current Price and Trend:**
Microsoft's stock has shown a strong upward trend over the past few months, with the current price hovering around $430. The stock has been making higher highs and higher lows, indicating a bullish trend.
**Support and Resistance Levels:**
- **Support:** The nearest support level is around $400, which has been tested multiple times in the past few months. If the stock dips, this level could provide a buying opportunity.
- **Resistance:** The next major resistance level is at $450. If the earnings report is positive, breaking through this level could signal further upward momentum.
**Moving Averages:**
- **50-Day Moving Average:** The stock is currently trading above its 50-day moving average, which is a bullish signal. The 50-day moving average is around $420.
- **200-Day Moving Average:** The stock is also well above its 200-day moving average, which is another bullish indicator. The 200-day moving average is around $380.
**Relative Strength Index (RSI):**
The RSI is currently around 70, indicating that the stock is approaching overbought territory. While this suggests strong buying momentum, it also warrants caution as stocks in overbought territory may face short-term pullbacks.
**Volume Analysis:**
Recent trading volumes have been higher than average, suggesting strong investor interest ahead of the earnings report. Increased volume on up days is a positive sign, indicating accumulation by institutional investors.
### Conclusion
Will the tech giant lead the market rebound? Based on both fundamental and technical analysis, Microsoft appears to be well-positioned for continued growth. The upcoming earnings report, bolstered by factors such as Apple license fees and the integration of ChatGPT in Microsoft Office, could potentially exceed expectations. Technically, the stock is in a strong uptrend with key support around $400 and resistance at $450. Investors should keep an eye on the RSI and volume for signs of continued momentum or potential pullbacks. If you believe in Microsoft's long-term growth prospects, particularly with its advancements in AI technologies and strategic partnerships, $430 could be a reasonable entry point. However, always consider your investment strategy, time horizon, and risk tolerance$Microsoft(MSFT)$
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MSFT is ridiculously under-valued. Be patient. Don’t sell. Opportunity to buy more today for retirement. MSFT is up sharply in the long run. MSFT proven record
MSFT gonna crash to $250 after earnings. 37 PE is too high
Buying, $450+ incoming
470 by next Thursday is my prediction. MSFT is the leader in AI for a reason.
Should I sell some of my NVIDIA to buy Microsoft?