Microsoft (NASDAQ 🙂 Q3 revenue is scheduled to be released after the market closes today, with a $ 0.95 increase for the same quarter a year ago and an estimated consensus revenue of $ 29.89 billion, jumping out the $ 26.82 reported last year.
In the past 22 quarters, the software giant has only been disappointed twice by EPS and by revenues seven times – the type of results that have driven the stock price up has increased by more than 125,000% since it was first traded in 1986. The share has won almost 25% since the beginning of 2019, to close yesterday's session with 1.4%, at $ 125.44, their fourth consecutive win day.
The upward trajectory of MSFT shares seems to be continuing. Positive figures today could push the share price up again, but we think there will be a dip first. Technicals suggest a correction before the price continues to rise.
Microsoft newspaper
The share has already risen by 8% since the previous record high, on March 18. In addition, the RSI is at the overbought level of 79.38 and reached the level of March 21, after reaching a new record high.
The price is furthest from the upward line since the route planning in December and has not come close since the last landing on 28 March. We would therefore adopt a defensive stance and wait for a correction of the uptrend rule before considering a long position.
Trade Strategies
Conservative traders would wait for a return to the $ 116 level from the previous record. Then wait for proof of delivery, with at least one long green candle that floods a red or small candle of both colors.
Moderate traders would be happy with a return to $ 120, the height of March, followed by the same congestion described above.
Aggressive traders risk a long position with a return to the $ 120 level, provided their account was able to withstand a fuller return movement.
Trade sample
Listing: $ 120
Stop-Loss: $ 116, previous record
Risk: $ 4
Target: $ 132
Reward: $ 12
Risk-Reward Ratio: 1: 3
