Chart of the Day: Can Microsoft Deliver?
Tonight we hear from Microsoft ($MSFT) as they report their second quarter results after the close of trading. Recent price action has been constructive but the stock still finds itself battling the trend, which has been down for months. Sure, the stock had a nice pop higher in June after some news drove the short sellers to cover their positions but the stock fell on its sword just after a three-day party. Notice right after the indicators went back to bearish and it wasn’t even a week or the price action to go from bullish to bearish. Talk about fickle!
The stock was on a massive run in 2025 leading into Halloween but started to get dismantled just afterward. A series of lower highs and lower lows since then has kept Microsoft in the penalty box, the stock is down about 20% on the year and is far behind the rest of the market indices. Yet, there is some life in the chart here, albeit just some green shoots. Seems investors/traders are waiting and watching carefully to what they company has to say first before figuring out what the next trend might be.
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MACD is flat here, stochastics (momentum) is starting to move u and money flow remains bullish. RSI is flat too, so not many of the indicators are showing any clues at all. The stock has shown some improvement but volume trends are not bullish. Option prices are elevated though, this market is looking for a large move post earnings. We hope that will be up but the chart is not telling us much just yet.
We like Microsoft in thestreet Pro Portfolio and rate it a two, stock pile on pullbacks.
