Microsoft Corporation (NASDAQ:MSFT) earnings beat expectations
Microsoft (MSFT) announced its Q1 2019 earnings on Wednesday, beating analysts’ projections. Its stock was up nearly 4% in after-hours trading.
The tech giant reported earnings of $1.14 per share on $29.1 billion in revenue. Analysts predicted earnings of $0.96 per share on $27.9 billion in revenue.
Microsoft’s cloud business, the cornerstone of the company’s pivot to cloud computing, raked in $8.57 billion of revenue in the quarter. That’s an increase of 24%.
Microsoft’s Productivity and Business processes segment, which includes the company’s Office line of software, saw revenue of $9.8 billion. That’s an increase of 19%.
Microsoft’s More Personal Computing business, which includes Windows, saw $10.7 billion in revenue.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 107.50.
The projected lower bound is: 96.85.
The projected closing price is: 102.18.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with MICROSOFT CP), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 27.6688. This is not an overbought or oversold reading. The last signal was a sell 20 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.16. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 63 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -197.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 14 period(s) ago.
Rex Takasugi – TD Profile
MICROSOFT CP closed down -5.780 at 102.320. Volume was 100% below average (consolidating) and Bollinger Bands were 75% wider than normal.
Open High Low Close Volume___
108.410 108.490 101.590 102.320 30,681
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 108.20 110.59 100.35
Volatility: 47 31 31
Volume: 33,751,128 26,489,434 28,884,004
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
MICROSOFT CP is currently 2.0% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of MSFT.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on MSFT.O and have had this outlook for the last 10 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.
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