Chart of the Day: Microsoft May Be in a Good Spot
The company releases earnings this week and expectations are moderately high.
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Here come the big guns reporting earnings this week, with five of the Magnificent Seven posting.
Microsoft (MSFT) , reports on Wednesday after the close along with Amazon (AMZN) , Meta (META) and Alphabet (GOOGL) (Apple (AAPL) is Thursday). Look for some fireworks as talk of data centers, AI and software make their way to the stage.
Microsoft's problems are well-documented. The stories about software demand destruction due to AI advances have been told and denied. But the results matter, and some competitors such as IBM (IBM) and ServiceNow (NOW) last week pointed to anxiousness and doubt underlying their strong earnings. Will Microsoft say the same thing? Probably not, they are always aggressive, positive and ambitious.
The Microsoft chart shows some nice improvement over the last couple of weeks following a nice base-building process. Higher highs, higher lows is our textbook definition of an uptrend. Candles are teal, which means cautiously bullish on the GoNoGo composite of indicators. Look at the bottom pane, the strong move up in money flow.
Big money has been coming after the stock for a month now. That is a bullish sign. There is significant resistance at the $450 level but above there, we could see a run to new highs.
We like Microsoft in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
Related: When Is Low Price an Opportunity? When Is It a Risk?
At the time of publication, TheStreet Pro Portfolio is long MSFT, GOOGL, META and AAPL.
