Microsoft Corporation (NASDAQ:MSFT) making a huge bet on artificial intelligence

Microsoft Corporation (NASDAQ:MSFT) making a huge bet on artificial intelligence

Microsoft Corporation (NASDAQ:MSFT) making a huge bet on artificial intelligence

Microsoft Corp. MSFT, +1.32% is making a huge bet on artificial intelligence by sinking $1 billion into AI startup OpenAI, the companies announced Monday. Under a partnership, OpenAI will run all of its services on Microsoft’s Azure cloud platform and use Microsoft as its preferred partner for commercializing new AI tech.

On its website, OpenAI says its mission is “to ensure that artificial general intelligence (AGI) — by which we mean highly autonomous systems that outperform humans at most economically valuable work — benefits all of humanity.”

Microsoft, which is currently the only U.S. company valued at more than $1 trillion, recently reported strong earnings growth driven by Azure. Shares were up 1.2% to $138.19 in recent trading Monday, compared with a flat Dow Jones Industrial Average DJIA, +0.07% a 0.3% gain in the S&P 500 index SPX, +0.28% and a 0.7% gain in the tech-heavy Nasdaq Composite Index COMP, +0.71%

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 143.60.

The projected lower bound is: 133.78.

The projected closing price is: 138.69.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.2205. This is not an overbought or oversold reading. The last signal was a sell 4 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 62.55. 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 18 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 72. This is not a topping or bottoming area. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

Rex Takasugi – TD Profile

MICROSOFT CP closed up 1.810 at 138.430. Volume was 3% above average (neutral) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
137.410 139.190 137.330 138.430 25,080,760

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 137.53 131.82 116.15
Volatility: 14 24 34
Volume: 24,989,260 23,937,654 30,748,878

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.

Summary

MICROSOFT CP is currently 19.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of MSFT.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on MSFT.O and have had this outlook for the last 28 periods.

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