MSFT shares could be in for some gains, as an inverse head and shoulders pattern formed on the stock’s 4-hour time frame. Price has yet to break past the neckline around $47.50-48.00/share before confirming the potential climb.
Stochastic is already indicating overbought conditions, which means that buyers might need to take a break. If so, this could keep MSFT shares in consolidation between resistance at $48/share and support around $45/share.
RSI is on middle ground and suggesting that the sideways movement could carry on. The 100 SMA is moving closer to the 200 SMA, indicating a potential downward crossover and a selloff for Microsoft shares.
MSFT Shares Forecast
Sources say that Microsoft is looking to acquire cloud computing company Mesosphere that is valued at $1 billion. Reports don’t contain much details yet though, and the company also hasn’t indicated any confirmation that talks are underway.
Other updates on the company include the sales of its gaming console Xbox. As it turns out, the Sony Playstation still outnumbered Xbox purchases but the backwards compatibility of the latter could churn out more revenues in terms of game sales.
The upcoming release of the FOMC minutes could have a major impact on overall market sentiment, possibly influencing the behavior of US equities as well. This report could indicate whether or not the Fed might be able to hike interest rates in September, which would mean higher borrowing costs for consumers and companies.
Aside from that, the report would also contain the policymakers’ assessment of the US economy and positive remarks could mean gains for higher-yielding assets like equities. On the other hand, downbeat comments could convince traders that the US recovery might still hit some roadblocks and lead to a selloff among stocks, including MSFT shares.
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