MSFT Shares in Mid-Range Area Ahead of Microsoft Earnings Report

MSFT Shares in Mid-Range Area Ahead of Microsoft Earnings Report

MSFT Shares in Mid-Range Area Ahead of Microsoft Earnings ReportMicrosoft is set to release its earnings report in today’s US trading session, and MSFT shares are currently trading around the middle of its long-term range. Stronger than expected numbers could lead to a rally to the top at $49/share while weak data could spur a selloff to the bottom near $40-42/share.

Stochastic is indicating overbought conditions, which means that buyers are already exhausted and that a selloff might take place. RSI is still on the move up, hinting that there’s enough buying momentum left for more gains.

The 100 SMA is below the longer-term 200 SMA, also suggesting that the path of least resistance is to the downside. A move towards the bottom of the range would complete a double top pattern on the daily chart, signaling that a long-term downtrend is bound to happen.

MSFT Shares Outlook

Stock analysts are projecting a loss of 30 cents per share for MSFT shares, as the company could show a drop in profits for the quarter. The bottomline was probably dragged down by write-downs and restructuring in the company.

Meanwhile, Microsoft’s sales are expected to fall about 6% from a year ago to $22.06 billion, according to Thomson Reuters estimates, because sales of Windows software and Office software licenses continues to decline along with PC sales.

In addition, the company could discuss a potential mobile reboot, as the share of Windows smartphones is gradually dwindling. With its $7.6 billion accounting charge and more employee layoffs in the mobile business, Microsoft could disclose new strategies to boost Windows smartphones which have a meager 3% market share.

Longer-term declines for MSFT shares could take prices down to $32-34/share if the stock breaks below the double top neckline around $40/share. On the other hand, if this area holds as support and Microsoft’s strategy proves profitable, MSFT shares could still recover to the middle of the range or to the top eventually.

To contact the reporter of the story: Samuel Rae at

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.