Microsoft is “the best house in the neighborhood”: the Stock Exchange council

Microsoft disappoints (a little). Recently, the American giant founded by Bill Gates unveiled over the past quarter a turnover of 51.87 billion dollars, up 12%, while the company’s earnings per share (EPS) stood at 2 .33 dollars, a figure below the consensus of analysts, which had not happened since 2016. Profits still stood at 16.74 billion dollars, up 2%. “Microsoft suffered from the strong dollar, but overall the results were satisfactory, while the objectives for 2023 were confirmed despite the current complicated economic and political context”, noted David Derhy, market analyst at eToro. .

“In a neighborhood that is gradually deteriorating”, Microsoft is the “best of houses”, adds JPMorgan. “Overall”, “if the pockets of macroeconomic constraints become more evident in certain markets and segments”, Microsoft continues to be “relatively efficient on a large scale”, underlines the American bank. Wedbush, which for its part reduced its price target on the stock from $340 to $320, underlines that the Redmond firm considers that it has a good chance of achieving its target of double-digit growth in revenues and operating profit. excluding currency effects.

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What does technical analysis say?

From a technical analysis perspective, Microsoft’s descent into stock market hell came to a halt at the 50% Fibonacci retracement of the rally initiated in 2020 and completed in November 2021. Since then, the stock has rebounded strongly. and recently sent encouraging signals, such as the crossing of the 100-day and 20-week moving averages.

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However, the test remains to be transformed, the price remaining within a well-defined medium-term bearish channel. The challenge is therefore to manage to clear and close the resistance zone of 278.73-281.82 dollars (crossing point of the upper limit of the bearish channel, of a horizontal resistance, of an obstacle mathematical and the 20-month moving average, which had already allowed prices to rebound during the crashes of late 2018 and 2020) and the 150-day moving average (upper blue curve, which acts as dynamic downward resistance). Beyond that, the rebound may continue towards the next major resistances located at $286.97 and $291-293.30.

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In case of unfavorable price evolution, the action would benefit from a support zone towards 263.88-269.05 dollars.

Microsoft stock market and technical analysis Capital (Investing data)

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Author’s declaration of interests

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