Will cloud commuting support Microsoft shares?
Will cloud commuting support Microsoft shares?

Thursday will be the most important day of the week on Wall Street due to the publication of financial results of many large companies in technology industry. Among them will be Microsoft, which in recent years has regained its lustre thanks to the rapidly burgeoning sector of cloud commuting.

Quotations of Microsoft are near historical highs falling out at level of 64 USD. The last two definitely bullish candles show that after transitional consolidation around the level of $ 62 initiative again began to tilt to the side of bulls. The scenario of re-testing recent highs supports fact that since the middle of 2016 year is continued fairly dynamic motion along the bullish trend line. Moreover if we are looking beyond the medium term we have to deal with a golden cross – this is a clear signal indicating the dominance of the demand side, which lies in the fact that the short-term moving average remains above the long-term. If, however, there would be a deterioration of sentiment around the trading of Microsoft, than immediate support should be the line of upward trend, which now more or less coincides with the 50-day average (black). Going below this level would mean creating a new lower low, which could open the way for a possible larger correction.

Microsoft shares

The company founded by Bill Gates will release fourth quarter results on Thursday, after the bell ending the session on the New York Stock Exchange. Consensus assumes that EPS will be $ 0.78, the same as in the same period in 2015. In turn, the revenue should shape up at the level of 25.26 billion USD. The company in the last 9 quarters exceeded or not wailed market expectations, which pushed its listing on the historical peaks. The highlight of Thursday’s Microsoft report should be given on sector development associated with cloud commuting – the flagship product of the company in this area is the platform Azure.

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