"Assessing Microsoft Stock: Earnings Impact and Long-Term Outlook"

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Source: Investor's Business Daily
"Assessing Microsoft Stock: Earnings Impact and Long-Term Outlook"
Photo: Investor's Business Daily
TL;DR Summary

Microsoft's market cap surpassed $3 trillion, making it the most valuable company, and its stock presented a swing trading opportunity after a 25% increase from September. Despite a slight lag in relative strength, the stock's flat base and support at its short-term moving average line prompted a purchase. However, the decision to sell was influenced by the approach of earnings, as swing trading rules dictate avoiding holding through earnings due to potential volatility. Although the stock dropped after earnings due to weaker-than-expected guidance, it remains worth monitoring as it holds above its 21-day moving average line and sets up to surpass its all-time highs.

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