MICROSOFT CORP. - Microsoft Corporation - 10/17/2023 (GMT)

Microsoft Corporation (symbol ‘MSFT’) share price has incurred losses in the third quarter of the year of around 6% with a closing price of $319.90 at 31st of September. The company’s earnings report for the fiscal quarter ending September 2023 is expected to be released on Tuesday 24th of October, after market close. The consensus EPS is $2.65 against $2.35 of the same quarter last year.

‘Historically the company has not exactly been a ‘dividend heaven’ since the dividend yield has been kept below 1% for the last 4 years. The financial statements on the other hand show why investors and traders might still be interested in the tech giant. Total assets outweigh total liabilities at a ratio of 2:1 while the current ratio is at 178% indicating that the company has a solid balance sheet to withstand any short term turmoil.’ said Antreas Themistokleous, trading specialist at Exness.
 
Technical analysis shows that the price has been correcting to the upside since early October after finding sufficient support on the lower band on the Bollinger bands around that point in time. Currently it is testing the resistance of the 23.6% of the weekly Fibonacci retracement level and the 100 day moving average. The Stochastic oscillator is in the extreme overbought levels possibly indicating that a correction to the downside might be seen in the coming sessions while the faster moving average is trading below the slower one further supporting the bearish narrative. 
On the other hand if there are stronger earnings released later this month then we might see some spark in bullish volatility which could push the price to new highs or at least a retest of the latest high around the $340 price area.