Current trend

Shares of Microsoft Corp., a giant in the field of developing and selling operating systems and computer software, are adjusting around 416.00.

BMO Capital Markets experts maintained the company's stock rating at the "Outperform" level and the target price at 500.0 dollars per share. Analysts no longer believe that Microsoft Corp. will demonstrate noticeable growth, but do not exclude that the company will continue its gradual upward movement. The main factor in the restrained forecast was the rather weak consumer reaction to the assistant with the artificial intelligence (AI) function Microsoft 365 Copilot, which did not become a breakthrough novelty for the Edge browser.

On October 30, the company will publish a financial report for the first quarter of fiscal 2025: the consensus estimate of analysts suggests a decrease in revenue from 64.7 billion dollars to 64.51 billion dollars, which will still be higher than 56.5 billion dollars over the same period a year earlier. Earnings per share (EPS) are expected to be 3.10 dollars, up from 2.95 dollars over the previous quarter and 2.99 dollars in October 2023.

Support and resistance

On the D1 chart, the asset is trading within the "expanding formation" pattern with boundaries of 454.00–410.00.

Technical indicators are still in a stable state of a sell signal, but they are ready to start slowing it down soon: the range of fluctuations of the EMA of the Alligator indicator is pointing downwards, and the AO histogram forms descending bars.

Support levels: 409.00, 385.00.

Resistance levels: 426.00, 454.00.

Trading tips

If the local growth of the asset continues and the price consolidates above the resistance level of 426.00, one may open long positions with a target of 454.00 and a stop-loss of 410.00. Implementation period: 7 days and more.

In the event of a reversal and continued decline of the asset, as well as price consolidation below the support level of 409.00, one can open short positions with a target of 385.00 and a stop-loss of 420.00.