Chart of the Day: 'Wildcard' Microsoft Is in Need of Good News
The company will report earnings Wednesday and analysts are split as to how it will go.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Microsoft MSFT is due to report earnings on April 30 after the close and investors/traders are not very clear about how the report will turn out.
Several analysts have either downgraded the stock or upgraded the name before the report. It's always somewhat risky to follow that action. We also know some competitors such as ServiceNow NOW and SAP have reported strong numbers, future bookings and backlog — alleviating fears that tariffs or a slowdown in the economy might have on future earnings.
But Microsoft is always a wildcard. They have heavy exposure, of course, to the software and the PC business, search, cloud, AI and gaming. They spend a lot of capital as well, so we'll be watching that capex number carefully.
As for the chart, the stock is right at strong resistance. The candles have turned color, though, and a portray neutral amber color. That is much better than the pink/purple bearish tone of the GoNoGo indicator over the last three months.
Stochastics are up nicely, which means Mr. Softee has strong momentum, while the ADX though has turned down, which tells us the trend is weakening. Money flow has also turned lower but the MACD (moving average convergence/divergence) is on a buy signal as is the parabolic SAR.
There's lots of resistance above but if MSFT can get above $405 that would be a good situation.
The expected move for Microsoft post earnings is large at $17 dollars (up or down), which is about 4.3% of the stock price (higher-than-normal post earnings).
We like Microsoft in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long MSFT.
