MSFT trade ideas
MSFT EARNINGS CHART - PRICE TARGETS AND TRENDSMSFT
Trying to get multiple charts done so description will be short.
Sorry to those asking about my website. Work in progress, and progress was slowed due to migraines.
Basically, Short term shows a drop, mid term shows a pump, and long term shows a drop.
With this in mind, it sets up strategy to keep risk to a minimum during earnings.
IF MSFT is pushing 336-342 around close. Look to see a final pump to maybe 348-354, with some fast retracements in the AH.
IF MSFT is around 326-327 around 10am-11am, I would look to buy call options, and I would sell those call options before close.
Personally, I see the same indicators setup on almost all the technology stocks, THEY ALL show a small pump to the topside, with a near 20% retracement.
MSFT's Peak is Yet to ComeMSFT Daily Chart
MSFT is holding a strong support level around 385. In the last two trading days (11 & 2 Jan 2024), it did not break this support level.
MSFT went up from the lower trendline of its channel around 367. This is when the 5th wave of the impulsive wave started.
MSFT will continue to rise sharply in the 5th wave and peak around 410.
When MSFT reaches 410, AAPL would have closed its gap of 192, AMZN would have hit the upper trend line of its rising channel at 165 and NVDA would have completed its 5th wave around 580.
Around this time, which is between a week to two weeks from now, SPX would start a correction, if not a severe reversal.
Microsoft Stock Analysis: Navigating Key Support Levels – BreakTitle: Microsoft Stock Analysis: Navigating Key Support Levels – Breakout or Bounce?
Microsoft (MSFT) stock is currently at a critical point, hovering around key support levels, prompting investors to closely analyze potential outcomes – a decisive breakout or a bounce.
Support Levels under Scrutiny:
MSFT is currently navigating through pivotal support levels, marking a crucial phase in the stock's trajectory. The response within this range is pivotal for assessing whether a substantial directional shift is in the cards.
Breakout Scenarios:
A successful breach of these support levels by Microsoft could signal a noteworthy shift in market dynamics. Traders are meticulously examining trading volumes and various technical indicators to identify confirmation signals, potentially pointing towards a bearish trend.
Bounce-Back Potential:
Conversely, should Microsoft consolidate and find support at the current levels, it may set the stage for a resilient bounce. Positive market sentiment, strong fundamentals, or favorable news could reignite investor confidence, propelling the stock upwards.
Investors are advised to closely monitor how Microsoft navigates within these crucial support levels. Whether it's gearing up for a breakout or preparing for a rebound, understanding these potential scenarios is essential for making informed decisions amidst the evolving market dynamics.
Microsoft's Triumph Over Apple: The AI Revolution
Microsoft (NASDAQ: NASDAQ:MSFT ) has dethroned Apple to become the world's most valuable public company, marking a pivotal moment in the tech industry's landscape. This changing of the guard is not merely a financial fluctuation but a manifestation of the profound impact generative artificial intelligence (AI) is having on Silicon Valley and Wall Street investors.
The Rise of Microsoft:
For over a decade, Apple held sway as the undisputed king of the stock market, outshining giants like Exxon Mobil. However, a seismic shift occurred when Microsoft's market value surged by over $1 trillion in the past year, securing its place at the pinnacle with a valuation of $2.89 trillion, edging out Apple's $2.87 trillion.
Generative AI as the Catalyst:
This shift is not incidental but a consequence of the advent of generative AI, a technology capable of answering questions, creating images, and even writing code. Microsoft's strategic pivot under CEO Satya Nadella has been instrumental in leveraging generative AI to redefine its business landscape.
Microsoft's Evolution under Nadella:
When Satya Nadella took the helm in 2014, Microsoft ( NASDAQ:MSFT ) was at a crossroads. Nadella's visionary leadership refocused the company on cloud computing, challenging industry pioneer Amazon. His subsequent bold bet on generative AI, marked by investments in OpenAI and the development of GPT-4 technology, set Microsoft on an accelerated trajectory.
Integration of Generative AI:
Under Nadella's direction, Microsoft introduced generative AI into various facets of its business. From incorporating chatbots into Bing to infusing AI into the Windows operating system, Excel, and Outlook, Microsoft ( NASDAQ:MSFT ) strategically positioned itself at the forefront of the AI revolution. The recent release of a $30-a-month AI offering within Microsoft's productivity software further underscores its commitment to integrating AI into its products.
Financial Impact:
Although the revenue from generative AI is just beginning to materialize in Microsoft's financial results, it accounted for about three percentage points of growth to Azure in the last quarter. This trend positions Microsoft as a frontrunner in harnessing the economic potential of AI, contributing to the company's market value surge.
Apple's Struggles and Microsoft's Advantage:
While Microsoft ( NASDAQ:MSFT ) has been proactive in embracing generative AI, Apple seems to be lagging behind in the AI race. Apple's reliance on iPhone sales and incremental innovations has faced challenges, with Tim Cook's strategy showing signs of fatigue. Microsoft's strategic foresight into AI technology places it in a favorable position to navigate the future of the tech industry.
Looking Ahead:
The recent shift in market dynamics prompts a crucial question: who has the better strategy to propel their market value to the next level of $3.5 trillion? Microsoft's relentless pursuit of generative AI positions it as a strong contender, while Apple grapples with finding the next big innovation beyond the iPhone.
Conclusion:
As Microsoft ( NASDAQ:MSFT ) surpasses Apple in market value, it marks a symbolic victory for generative AI. The tech industry's reordering underscores the significance of embracing AI technology for sustained growth. Microsoft's ascent serves as a testament to the transformative power of strategic investments in generative AI, positioning the company at the forefront of the ever-evolving tech landscape.
Microsoft Overtakes Apple as World's Most Valuable Company
Microsoft briefly surpassed Apple as the world's most valuable company, marking a significant moment in the ongoing tech industry rivalry. This shift in leadership highlights Microsoft's strategic investments in generative artificial intelligence (AI), specifically through its collaboration with OpenAI, the creator of ChatGPT. As Microsoft's shares continue to soar, outpacing Apple, the dynamics of the technology landscape are evolving.
The Role of Generative AI in Microsoft's Ascendancy:
Microsoft's recent success can be attributed in part to its early adoption of generative AI technology, a field that has seen exponential growth in recent years. The company's investment in OpenAI, the innovative force behind ChatGPT, has played a pivotal role in reshaping Microsoft's business strategy. By incorporating OpenAI's technology into its suite of productivity software, Microsoft has revitalized its cloud-computing business, experiencing a notable rebound in the July-September quarter. The article delves into how generative AI is becoming a key differentiator in the competitive tech landscape and the advantages it offers Microsoft over its rivals.
Apple's Struggles and China's Impact:
Conversely, Apple finds itself grappling with weakening demand, particularly for its flagship product, the iPhone. A sluggish recovery in China's economy and the resurgence of competitors, such as Huawei, have added to Apple's challenges. The article examines the specific factors contributing to Apple's decline, shedding light on the economic landscape in China and the impact on the company's market share. Insights from analysts, like Redburn Atlantic, provide a comprehensive view of the challenges Apple faces and the potential drag on its performance in the coming years.
Market Valuation and Share Price-to-Earnings Ratios:
A critical aspect of the Microsoft-Apple rivalry lies in their market valuations and share price-to-earnings ratios. The article breaks down the financial metrics, highlighting that both companies are trading at premium valuations. Apple's forward price-to-earnings ratio of 28, well above its 10-year average, contrasts with Microsoft's ratio of around 31, exceeding its historical average as well. This section explores the implications of these valuations and what they indicate about investor sentiment towards the two tech giants.
The Historical Tug-of-War:
The article provides a historical perspective on the Microsoft-Apple rivalry, noting that Microsoft has briefly overtaken Apple as the most valuable company multiple times since 2018. It examines the specific instances, including 2021, when concerns about COVID-driven supply chain shortages impacted Apple's stock price. Understanding the historical context allows readers to appreciate the cyclical nature of the tech industry and the constant ebb and flow of market leadership between these two industry titans.
Conclusion:
In conclusion, Microsoft's brief ascent over Apple highlights the transformative power of generative AI and strategic investments. As the tech landscape continues to evolve, factors such as market valuation, geopolitical challenges, and technological innovation will play crucial roles in determining the future trajectory of these industry giants. The Microsoft-Apple rivalry is far from over, and the interplay between their strengths and challenges will shape the narrative of the tech industry in the years to come.
$MSFT at the top?Even though briefly NASDAQ:MSFT became the most valuable company in the world based on market cap.
From an Elliott point of view we might be on minor wave 5 of intermediate wave (5). After a top a correction always occurs. So be careful out there and look for signals to support this correction.
What is your opinion? Up or down from here.
Legal Disclaimer: The information presented in this analysis is solely for informational and educational purposes and does not serve as financial advice.
MSFT Elliot Wave AnalysisScenario 1:
- Wave 4 complete. 1-2 setup of wave 5 complete
- Confirmation with candle close above the descending curve and above 375.77
- Target: $391.50-$400
Scenario 2:
- Wave 4 incomplete. Move down was just an A wave and we are now in wave B to be followed
by a wave C
- Target: $360.38 - $350.60
MsftChop for the last month here. Either consolidation or distribution
Bigger picture here is the ascending broadening wedge inside white trendline.. this is a bearish pattern... if msft breaks below and closes below 366 than the correction has started to 300 with a pit stop to 330 first..
Inside the major pictues is a smaller pennat that msft has been trading inside..
366-376 is the pennants range. Over 377 and 400 comes. Below 366 and 330 incoming
Not looking good for MSFT bullsMSFT is testing a recent trend line with the lowest volume yet. Will be watching MSFT to see if it can take out the November 9th lows and either retest failed support or the underside of the 50 SMA / trendline.
Will start to develop a trade plan on the short side if the above materializes.
Cheers!
MICROSOFT: Bearish breakout under the 1D MA50.MSFT has turned neutral on its 1D technical outlook (RSI = 46.496, MACD = 1.200, ADX = 24.141) as the price reached the 1D MA50 for the first time since late October on a sideways price action. Since the 1 year pattern is a Channel Up, we expect its bottom to get tested (TP = 345.00) if the 1D MA50 is crossed. Consider it a bearish breakout signal.
See how our prior idea has worked:
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