Current performance

Shares of Microsoft Corp., a giant in the development and sale of operating systems and software for computers, are moving in a correction trend at 401.00.

The UK Competition and Markets Authority has approved the hiring of some former Inflection AI employees by Microsoft Corp. and the partnership between the two companies, saying that such a deal does not require a deep investigation and will not affect competition in the sector. Thus, the investigation that began in July has ended, and the authority’s experts believe that both corporations are developing consumer chatbots and can cooperate without consequences. Microsoft Corp. paid Inflection AI 650.0M dollars for artificial intelligence (AI) developments and the transfer of its employees and founders to work for the IT corporation. It will allow the startup to settle its financial obligations.

Meanwhile, BMO Capital Markets experts maintained a positive assessment of the issuer’s securities, confirming the overweight rating, with the target price of 500.0 per share. It is based largely on the statistics for the last quarter, which reflected revenue of 64.7B dollars, higher than 56.2B dollars in the same period a year earlier, and earnings per share of 2.95 dollars compared to 2.69 dollars.

Support and resistance

On the daily chart, the trading instrument is approaching annual lows within the reversal pattern Head and shoulders with the Neckline around 397.00.

Technical indicators are ready to strengthen the sell signal: the EMA oscillation range of the Alligator indicator is directed downwards, and the AO histogram is forming downward bars.

Resistance levels: 410.00, 433.00.

Support levels: 397.00, 376.00.

Trading tips

Short positions may be opened after the price declines and consolidates below 397.00, with the target at 376.00. Stop loss — 410.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 410.00, with the target at 433.00. Stop loss — 400.00.