Microsoft Corp. Impending CrashLooking at Microsoft Corp. (MSFT), we have the same dynamic we saw on the Nvidia (NVDA) and Apple, Inc. (AAPL) charts, the lower high.
The All-Time High for this stock came in July 2024. This means that prices have been dropping now for several months. The recent up-move is just a pull-back, a natural market reaction after a major move. The bias is down and new downtrend is being established, we are in bearish territory.
The pull-back produces a lower high and now we have a break below EMA8, EMA13 and EMA21 on the weekly timeframe. Closing below these levels, 421-423, would confirmed the bearish bias. The week closes tomorrow of course.
Trading volume has been dropping since March 2023, a very long time and we have marketwide correlation with this chart. The DXY, which moves in inverse fashion to these stocks, turned ultra-bullish and is growing like there is no tomorrow.
We are about to experience a major correction or crash on this one. Prepare yourself.
The bearish wave can last for months...
Thank you for reading.
Your support is appreciated.
Namaste.
1MSFT trade ideas
Correction Wave CompleteWe caught the move down and we are now reacting perfective off this zone 0.382 level. Price is very choppy in this zone and has made no lower lows in the lower time frames. Waiting for EMA to line up bullish before we take entry in shorter time frames.
I will be entering a swing position once we have a strong indicator of a reversal.
Microsoft - Its Decision Time Hi Guys,
This chart could be a leading indicator for overall market direction, alongside NASDAQ:NVDA - NVIDIA and $AAPL. So this chart and the other two largest companies in the world Nvidia and Apple are worth paying close attention to, for overall market direction.
▫️ Similar to a the 2019 - 2022 period, the price held the mid term parallel channel with the 200 day SMA acted as underside support. When the 200SMA and the parallel channel was lost in Q1 2023, it led to significant 28%+ decline from these levels (38% from the prior highs of the period).
▫️ We can use the DSS Bressert and the On Balance Volume to help here in distinguishing a likely trend direction.
▫️ This is a very strong chart as it stands. Many traders could step in at the 200 day SMA and bottom of the channel. If the channel is lost, and we have serious reason for concern and could exit on a revisit or test of the underside of the channel (as illustrated with the arrow).
Unless the channel is lost which sync's up with a loss of the 200 day moving average (approx. $410), intermediate trend looks intact for continued upwards trajectory.
Remember, you can check in on this chart and press play to get updated data at any time by clicking the link in the comments below or by following me on TradingView.
PUKA
OpenAI closes historic funding roundOpenAI has closed a $6.6 billion funding round, reaching an impressive valuation of $157 billion. The company, known for its development of ChatGPT, cements its position as one of the world's most valuable private companies.
• Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) are the lead investors in this round, joined by Thrive Capital, Khosla Ventures and other venture capital players.
Changes to the company's structure
The closing of the financing round coincides with a phase of internal restructuring at OpenAI. The departure of its chief technology officer, Mira Murati, last week marked a key point in this transformation.
• CFO Sarah Friar announced that the company plans to offer employees the opportunity to buy back their shares.
Revenue and growth outlook
OpenAI projects revenues of $3.6 billion in 2024, despite growing losses of more than $5 billion. By 2025, the company expects a significant jump, with revenue forecast at $11.6 billion.
• Thrive Capital has the option to invest an additional $1 billion if OpenAI reaches certain revenue targets.
Participation of major investors and their role
Altimeter Capital, Fidelity and SoftBank (TYO: 9984), along with Abu Dhabi investment firm MGX, also participated in this round, underscoring OpenAI's appeal to large global investors. Although Apple (NASDAQ: AAPL) was in negotiations to participate in the financing, it ultimately decided not to do so.
• The structure of the financing included convertible notes contingent on the successful restructuring into a for-profit organization.
OpenAI's meteoric growth
Since ChatGPT's launch, OpenAI has experienced rapid growth in popularity, attracting more than 250 million weekly active users. Its valuation has increased from $14 billion in 2021 to $157 billion in 2024.
• The company continues to look to develop artificial general intelligence (AGI) as it accelerates its commercialization and pursues profitability.
Conclusion
The $6.6 billion funding round strengthens OpenAI's position as a leader in artificial intelligence, with backing from major investors such as Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA). Despite internal challenges, the company remains focused on growth and moving towards artificial general intelligence (AGI), consolidating its key role in the future of the technology sector.
Ion Jauregui - ActivTrades Analyst
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Microsoft. There is still potential for the price to decline.Hello traders and investors!
Let's take a look at the situation with Microsoft stocks. I believe there is still potential for the price to decline.
Weekly Timeframe
On the weekly TF, there is an attempt to reverse the long trend. The first seller's impulse has been formed. The level of the last buyer’s impulse start is 445.66, and the level of the last seller’s impulse start is 468.35. The end of the last seller's impulse is at 385.58.
Key candle in the seller's impulse is from July 24 (largest volume in the impulse, marked as "KC" on the chart). It was tested by the buyer on August 19. The test level is 426.70. The buyer missed the 50% level of the seller's impulse (426.97) by 27 cents. Then, the buyer attacked the test level with two candles on increased volume, bringing the price above the 50% level, but the seller pushed the price back below the test level (426.70), forming a seller's zone above (red rectangle on the chart). Further price decline is likely, with the first target at 400.8, which is the start of the last buyer's sub-impulse on the weekly TF.
Daily Timeframe
On the daily TF, there’s a sideways range (formed on August 22, with point 4). The upper boundary is 432.15, and the lower boundary is 385.58. The relevant seller's vector is 6-7, with the first potential target being 400.8 (then 385.58).
The buyer's vector 5-6 broke above the upper boundary of the range, gathered volume, and the seller returned the price to the range, forming a seller's zone at the upper boundary. This zone was tested on September 26, after which the seller's continuation began. The buyer attempted a recovery on September 30 with increased volume but failed to deliver results. Yesterday, the seller engulfed the buyer's candle.
Highlights
On both the weekly and daily TFs, the priority is to look for selling opportunities. The last daily candle has increased volume, making it a good point to start looking for sell opportunities. On the daily TF, possible threats to short positions include the 50% level of the last buyer's impulse at 413.72 and the buyer's zone with an upper boundary at 410.65 (green rectangle on the chart).
It makes sense to consider buying opportunities when the buyer shows strength, for example, when interacting with the levels of 400 or 385 and defending them.
How to decode candle volumes is explained here
Good luck with your trading and investments!
Is Microsoft's Quantum Leap a Calculated Investment?In the dynamic landscape of tech investment, Microsoft's quantum computing advancements have sparked significant interest. However, as with any emerging technology, the question remains: is the potential return on investment justified by the inherent risks?
Microsoft's strides in quantum computing are undeniable. From creating record-breaking logical qubits to demonstrating practical applications, the company has established itself as a frontrunner in this field. Yet, the path to commercialization is fraught with challenges, including technological hurdles and intense competition.
Investors must carefully evaluate the potential rewards against the risks. While the long-term prospects of quantum computing are promising, the short-term challenges and market uncertainties cannot be overlooked. Is Microsoft's strategic positioning and technological prowess sufficient to navigate these obstacles and capitalize on the potential benefits of quantum computing?
A Deeper Dive:
To make an informed investment decision, investors should consider the following factors:
Technological Progress: The rate of advancement in quantum computing technology will significantly impact the timeline for commercialization and potential returns. While Microsoft has made significant strides, the field is still evolving rapidly.
Competitive Landscape: The competitive landscape in quantum computing is dynamic and includes other tech giants like Google, IBM, and Amazon. The ability of Microsoft to maintain a competitive edge will be crucial for long-term success.
Market Demand: The potential market for quantum computing applications is still emerging. The development of practical use cases will be essential to drive demand and justify investment.
Regulatory Environment: Government policies and regulations can impact the development and commercialization of quantum computing technologies. Investors should be aware of any potential regulatory hurdles.
Economic Factors: Macroeconomic conditions, such as interest rates and market volatility, can influence investment decisions. Investors should consider how broader economic trends may affect the quantum computing market.
Conclusion:
Investing in Microsoft's quantum computing endeavors presents both opportunities and risks. While the long-term potential is significant, investors must carefully assess the factors outlined above to make an informed decision. As the field continues to evolve, it will be essential to stay updated on the latest developments and market trends.
Analyzing Microsoft: Patterns and Profit-Taking Opportunities
Microsoft is in a profit-taking zone based on the Parallel Channels and Equal Weight method.
The round number of $500 could act as a psychological level, affecting future price movements.
This is not a shorting zone, but a chance to manage your position and consider taking profits if it fits your strategy.
The second time in my analysis, I want to highlight the idea of Parallel Channels and Equal Waves, which is a helpful method for deciding when to take profits. One of its main benefits is that it helps find profit-taking areas, especially when there’s no major resistance or "traffic" on the left side of the chart.
Right now, Microsoft has reached important levels that look similar to patterns we’ve seen in gold. Also, the price is approaching a third key point, the round number of $500, which could play an important role in the near future.
It’s important to point out again that this is not a shorting area, but rather a potential profit-taking zone. If you’re managing your position as a mid-term investor and you might need your invested money soon, this could be a good place to take some profits.
Make sure to align this analysis with your overall investment plan. If you're ready to act, now could be a good time to lock in some profits.
Regards,
Vaido
msft h and shouldersmicrosoft with an head and shoulders, possibly going down, with a huge sell in insiders. abpout 70 million on insiders sell on the last month,
so even indexes must go down with this sellibg msft, by beeing one of the most capitelised companies in the world after 3 trillion market cap, if you will see the inside sellers, its a huge difference by the last months inside trades, so its a double shoulder head and shoulders and both shoulders already done in the daily time frame, so we must see an downgrade in the price for the next weeks and even quarters, this, ofcourse in my point of view,
do never trade in anothers person opinion, do your own research and trade by it, this is only my poin of view, i will sell msft and north american indexes, by beeing one of the most market capital company going down, so the indexes must go too, as far as i think, thrieaving all market down side, but other stocks are not head and shoulders, even got some upper grade but in my POV, they will go down with the second or thirdth most capitallised stock going down,so keep reaserching, and go for the profits,
the sp500 is in an extreme point of going down as well, it must go up a lot by passing this point of thecnhical analysis pushing down the index, for now, sp 500 will have a huge down fall and almost freefall to 2300 points, but if goes a lot up can pass the thecnhical indicators by now and go even up by even more points,
only the next days will tell us wht is the best investment,
for now im in a sell possitoion in sp500 and msft
but lets see the progress of the next days and weeks, on sp 500 and msft,
hope you the best profits in this trade, but do your own research before trading,
as far as i am consern , ill wait some days long in sp 500 until i put a short sell in sp500 and msft,
im just loooking for work, if you got an investment company and want me to work for you, just contact me , im in willing to work in the investment finnnace field, as a headge funder os something that i can get good profits, like 20 to 30 per cent profits on my trades, and i will do everything to have them,
keep your investment safe, and do not invest anything that you cannot loose,
this is only my pov, is not any investment idea, you only do whatever you want, and do with intel, so research about the topic and creat your own investment ideas
LOOKING FOR JOB
msft going down in valueas my prediction of spx500 and the major american indexes going down in another 'crisis' gold as a safe haven msft one of the most capitalises if not the most, not sure yet, giving a idead
of reversal trend as havin an double shoulder head and shoulder, daily basis, sgnifying that a reversal in the indexes can be coming in the next weeks or quarters,
trade safe, this is only my pov.
Microsoft Parallel Channel and 200 DSMA worth watching Microsoft - NASDAQ:MSFT
Long Term Chart
▫️ An incredible long term trending channel.
▫️ Lets zoom in on Channel 1 and Channel 2
I have compared the 2019 - 2022 period(Channel 1) to the current 2022 - 2024 period (Channel 2) .
Channel 1
2019 -2022
Channel 2
2022 -2024
▫️ Both of these periods have had parallel channels with the 200 day SMA acting as underside support.
▫️ When these were both lost in Q1 2022, it led to an approx. 38% decline from the highs, or a c. 28% decline from losing the channel or 200 DSMA level.
▫️ This is a very strong chart. Unless the channel is lost which sync's up with a loss of the 200 day moving average (approx. $410), intermediate trend looks intact for continued upwards trajectory.
PUKA
MSFT, GS: Bull Flags in Blue Chips?Some major stocks have done little as the broader market hits new highs. Today’s idea considers two members of the Dow Jones Industrial Average where some traders may see potential upside signals: Microsoft NASDAQ:MSFT and Goldman Sachs NYSE:GS .
The first pattern on both is the tight pullbacks after rallies. Those may be viewed as bull-flag continuation patterns.
Next, both are trying to hold above recent weekly highs. Is old resistance becoming new support?
Third, rising MACD on each chart could indicate bullishness in the short term. They’re also above their rising 21-day exponential moving averages.
Finally, inside days this week may suggest that near-term weakness is fading as a new month and quarter approach.
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MSFT 9/26/24💹
👁️ Outlook
30m Context Time Frame: Price has been breaking bullish on the daily and 5hr, however needs some time to break bullish on the 30m time frame and come above the EMAs. Once that happens and shows money coming in then I want price to re-accumulate before going down to my Validation 6m time frame but this is a good stock to look at once that happens with lots of liquidity above.
Bias: Neutral until signs of money coming in above EMAs
Keeping an eye on this. 👁️
Microsoft LongMicrosoft
MTF Analysis
MicrosoftYearly Demand Breakout 350
Microsoft 6 Month Demand BUFL 384.3
MicrosoftQtrly Demand 384.3
MicrosoftMonthly Demand 384.3
MicrosoftWeekly Demand 413
MicrosoftDaily Demand BUFL 427
ENTRY -1 427
SL 398
RISK 29
Potential Target 549
First Target Points 478
First recovery Target Points 80
Last Swing Low 388
Last Swing High 468
RR 3
RR 28%
MSFT is ready to Explode and RISE! by Elders Force 13 dayMSFT 13 day Elder Force Index is above 0 and rising indicating a strong bullish signal along with the gap up. The pattern of a double bottom has finished forming and has broken out on strong momentum. Also the 20 day EMA is crossing over the slower EMA and indicatings a good signal to enter for a 2 moving average crossover system.
20% to 40% Dip Coming for Microsoft?DISCLAIMER: This is not trade advice. This is for educational & entertainment purposes only to demonstrate how I am looking to be involved with this market. Trading involves significant risk, do your own due diligence.
A concerning sign for Microsoft bulls triggered a few weeks ago. We saw the DPO divergence confirmed. Price targets to the downside of this confirmation imply a 20% to 40% dip is coming for Microsoft.
Do you think Microsoft is heading for a dump?
I do.
See you down there.
Looking for a MSFT support bounce! 🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
Microsoft seem to have made intermittent top. Look for reversalNASDAQ:MSFT has fallen in 5 waved from the top made in July and in process of retracing that down-move in ABC. The fall from top could be either a larger degree wave 1 or wave A. In both cases, soon wave 3 or C down should start since the wave 2/B has completed 61.8% retracement which is at 436.73. Stock closed below that level yesterday which makes me wonder if the down-move in wave 3/C has begun already.
Assuming down-move has started, we should head towards 364 as per wave equality (3=1 or A=C), though if economic macros stay recessionary then the move could stretch to 1.6 or 2.6 times the size of wave 1/A (in log).
MSFT: Top Signal Below Resistance?Looking at MSFT's daily chart, the price action shows a strong upward movement recently, breaking above the key resistance level at $426.79 and reaching the next resistance at $441.48. The 21-day EMA is currently trending upward, supporting the bullish momentum. However, the price is now pulling back slightly from the $441.48 resistance level, which might indicate short-term profit-taking or consolidation after the strong rally. A sustained breakout above $441.48 would indicate further bullish potential, but the price needs to stay above this key point to maintain this momentum. If the price materializes a top signal, the next support would likely come around $426.79, the previous resistance level, now support - Princciple of Polarity.
On the hourly chart, MSFT is moving within a well-defined ascending channel, with the price bouncing between the channel's support and resistance lines. The recent pullback from $441.48 suggests a minor correction within the channel, but as long as the price remains above the channel's lower boundary and the 21-hour EMA, the uptrend remains intact.
Overall, MSFT is in a bullish structure, but the immediate test will be how it reacts to the pullback from the $441.48 resistance. A breakout above this level would confirm continued strength, while a failure to hold the short-term support levels could signal further consolidation or correction.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
Microsoft Announces $60 Billion Buyback and Dividend HikeMicrosoft Corp. (NASDAQ: NASDAQ:MSFT ) recently announced two major moves designed to bolster shareholder value and solidify its position as a leading tech giant. The company unveiled a $60 billion stock buyback program along with a 10% increase in its quarterly dividend. This announcement has sent positive waves through the market, and investors are keeping a close eye on what this means for Microsoft's long-term outlook, especially amid its aggressive investments in artificial intelligence (AI).
The $60 Billion Buyback: Strategic Capital Allocation
On Monday, Microsoft revealed plans to repurchase up to $60 billion of its stock. While this figure may seem colossal, it represents less than 2% of the company's market cap, which currently stands at a staggering $3.2 trillion. Buybacks are a strategic way for companies like Microsoft to return capital to shareholders, reduce the number of shares outstanding, and increase earnings per share (EPS).
The buyback plan can be canceled at any time, signaling flexibility in Microsoft's strategy to navigate market conditions. The announcement comes at a critical time when investors are pressuring the company to show returns on its heavy spending in AI development, particularly through its flagship product, the Copilot AI assistant, and other AI-driven tools.
### Dividend Hike: Rewarding Loyal Shareholders
In addition to the stock buyback, Microsoft also announced a 10% hike in its quarterly dividend, raising it by 8 cents to 83 cents per share. This marks the 20th consecutive year the tech behemoth has increased its dividend, a testament to its commitment to rewarding long-term investors. The higher dividend will be payable on Dec. 12, 2024, to shareholders of record as of Nov. 21.
The steady rise in dividend payments is indicative of Microsoft’s robust financial health. As it continues to post consistent earnings, the dividend increase signals confidence in sustained cash flow generation, even as the company allocates substantial capital toward AI infrastructure.
A Focus on AI Investments
The timing of the buyback and dividend announcement coincides with Microsoft's unveiling of several new AI features. During its recent "Wave 2" event, Microsoft introduced updates to its Copilot AI, including enhancements in Excel, OneDrive, and Outlook. These AI-driven tools are part of the company’s broader push to integrate advanced machine learning and AI capabilities into its suite of products, driving future growth.
Jefferies analysts have described Microsoft as a "top AI beneficiary," citing strong adoption rates of its Copilot features and improvements in user experience. This aligns with the company’s focus on using AI as a growth driver, especially as demand for AI outpaces the company’s capacity to deliver.
Stock Performance and Technical Outlook
Microsoft stock has been on an upward trajectory, rising 15% year-to-date, and showing consistent strength over the past year. On Tuesday, NASDAQ:MSFT surged 1.66%, buoyed by the announcement, and continues to hold investor confidence.
Technically, Microsoft’s stock sits at an RSI of 66, indicating bullish momentum. This level is approaching overbought territory but still suggests room for continued growth, especially as Jerome Powell’s much-anticipated speech on rate cuts approaches. The stock’s resilience is evident as it has managed to retake all its moving averages and break past a 426.79 short-term high, a level seen as critical resistance.
Moreover, Microsoft has been in a steady upward trend since September 2023, maintaining consistent gains month-over-month. This steady performance is a signal of both investor confidence and the company’s ability to deliver, even amid macroeconomic uncertainty.
Conclusion:
Microsoft’s latest financial moves—both the $60 billion buyback and the dividend hike—demonstrate its ability to reward investors while continuing to focus on long-term growth. As it positions itself as a leader in AI, Microsoft’s ongoing investments are expected to pay off significantly in the years ahead.
With a solid balance sheet, growing dividends, and continued stock buybacks, Microsoft’s outlook remains strong. While some volatility may lie ahead due to macroeconomic factors, the combination of smart capital allocation and a focus on next-gen technology like AI puts Microsoft in a prime position to continue its upward trajectory in both stock price and market influence.
Investors looking for long-term stability combined with growth potential should keep Microsoft on their radar as it navigates the evolving tech landscape.