Microsoft channel break Analysis
Fundamental / Technical / News analysis
- Microsoft earnings were positive.
But they were not enough to break this channel since June 10th. - Today we gapped above resistance, breaking the channel.
This was caused due to Microsoft winning the JEDI contract from the US government; who beat Amazon, Oracle and IBM cloud platforms. - Revenue from the JEDI contract is estimated at $10 billion over 10 years.
The value of the contract isn't significant to Microsoft market cap of $1 trillion (1%), specially as it will take a decade to get.
However, Microsoft earnings gave Azure (cloud service) a lot of importance. Beating its competition in this area, will boost sentiment. After all... we did break resistance on this specific news! Price talks more than anything.
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