Microsoft
The strongest resistance for all-time of Microsoft !Hello, dear Traders!
Monfex is at your service and today we overview MSFT.
Microsoft's report exceeded analysts expectations. Since the company's forecast for cloud services was higher than expected.
A Flat top triangle pattern is here, the price near resistance zone by breakout of which will be a stong signal to buy.
Another side: a bearish divergence by RSI and by breakout the support line of this triangle will be a sell signal to 50% Fibonacci .
The resistance zone ~ $142-142.5
The support zone ~ $120
Market Cap
1073.602B
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Microsoft channel break AnalysisFundamental / 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.
Microsoft head and shouldersAs Microsoft still ranging near all-time highs, 1 hour chart shows potential formation of H&S, divergence on indicators. Pre-market price already shows right shoulder forming. If we bounce from he to the downside, then selling is highly probable.
Second short open on the break of the support buy zone.
Good Luck!
MSFT Short Opportunity after Pre-market pushApple is looking to regain market cap from Microsoft after its 6 month rush. apple look to release new iphone priced at 399
Major company moves have been done by apple with many new products that came out so recently and many to come that are new to apple completely. Earning coming out soon with apple ready to beat exceptions setting up to break all times high
Sell entry 1 $142.00
entry 2 $144.00
sl 146.00
tp.1 $140.00
tp.2 $138.00
tp.3 $136.00
EROS a mid-to-long-term gap fill candidate with earnings Oct 8EROS is a Bollywood production company making big moves to try to dominate India's booming streaming market. Eros recently went on a 200% run after signing several major streaming contracts, including a deal with Microsoft to stream Eros content on the Azure platform. The stock price then cut in half as it first pulled back from overbought territory, then broke down even further on news that the company took on a $27.5 million debt due in 2020.
(This is something that often happens after announcement of a new product offering: the stock price initially shoots up, then breaks down on news of a new shares or senior notes offering to raise capital for manufacturing or marketing the new product. Shorting cash-poor companies after a big product announcement runs up the stock price wouldn't be a bad strategy.)
Anyway, for the moment Eros has found a floor around 1.80. It has support from there all the way down to about 1.14, with the strongest support nodes around 1.65 and 1.32. This is a decent time to take a small position for a mid-term swing. The stock is likely to get further news boosts as it implements its streaming deals and launches its content on the various platforms.
One short-term risk is the earnings report on October 8. Eros is reporting earnings later than usual, which often bodes ill for earnings results. (Late earnings tend to be worse than expected, whereas early earnings tend to be better than expected.) If Eros's earnings miss, the stock is likely to break down to one of its lower support levels-- perhaps even the very bottom of the support range. I would look at that as an entry opportunity. So if you do take a small position now, save enough cash to at least triple the size of the position after earnings if the price breaks down.
In the event that Eros beats earnings and/or begins to run up again on implementation news, it's got plenty of room to run. 3.00, 4.00, and 5.00 are all conceivable in the mid-term. In the longer term, this stock has the potential to break out above 5.49 and then very quickly fill the gap up to 7.23.
(For weekly news and educational videos, check out my new YouTube show, Wall Street Petting Zoo!)
Microsoft Push Tech Stocks Higher Amid Trade WorriesPreviously, the mounting of U.S. tech stocks was recorded. The gains in Apple, Microsoft, and Merck & Co occurred when investors set aside doubts regarding the U.S.-China trade dispute.
Shares of Apple Inc grew 2.4%. The increase was after sales of the company’s newest iPhones were off to a robust start. The information was according to Chief Executive Officer Tim Cook that he then stated in a German news report.
Meanwhile, JP Morgan elevated its forecast for shipment volumes.
In fact, Apple is battling to shift its shrinking iPhone sales amid dull global demand for smartphones.
The rise of 0.9% in Microsoft Corp., together with the S&P 500 technology index also buoyed stocks.
However, sentiment on Wall Street got an additional improvement after White House trade adviser Peter Navarro discharged reports.
The report was in regard to the Trump administration considering of delisting Chinese companies from U.S. stock exchanges as “fake news.”
On Friday, fears related to those rumors had sent the S&P 500 and Nasdaq to a more than three-week low.
The Different Impacts of The Trade Dispute
Chief executive officer of Ladenburg Thalmann Asset Management in New York, Phil Blancato, said, “This idea of using different types of levers that impact trade negotiations is something that we will get accustomed to.”
On the other side, U.S.-listed shares of Chinese companies Alibaba Group Holding Ltd and Baidu Inc increased 0.8% and 1.5%, respectively.
In October, the schedule of the next round of high-stakes trade talks between the world’s two largest economies will take place.
So far this year, Wall Street’s main indexes are on course to end September with the weakest quarterly performance. They were rattling due to a multitude of factors, including an increase in U.S.-China trade strains.
The Dow Jones Industrial Average grew 0.36% to end at 26,916.83 points.
Meanwhile, the S&P 500 also added 0.50% to 2,976.73 with the Nasdaq Composite that has improved 0.75% to 7,999.34.
For the month, the S&P 500 gained 1.7%, the Dow gained 2.1%, and the Nasdaq rose 0.5%.
For the third quarter, the S&P 500 and Dow inched up 1.2%, while the Nasdaq curved in 0.1%.
Ascending triangle on Microsoft, could make new highs soon.MSFT has been forming this ascending triangle pattern since early August, with a series of higher-low's and a relative flat line of resistance around 139.50 or so. Measured move of the break-out would put the price at around 147.50.
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