Microsoft will announce earnings after the close tomorrow. EPS is expected to be $2.93 on revenues of $64.39B. That compares to earnings and revenues from a year ago of $2.69 on $56.18B. Earnings are up 8.92%. Revenues are up 14.6%.
Of course, price reaction will not only be with regard to the beat or miss of those numbers, but also other pieces of their earnings.
Fundamentally, the results are cut and dried.
However, the subsequent price action given the details of the report, will give the "markets" view as it relates to all the details, and inclusive of whether it is "good enough" . The price will either go higher or lower (that is obvious).
What is not so obvious is the the price action in relation to the technicals applied to that price action. Since traders react to the technicals, knowing where key technical levels are and why can help give the roadmap for the trader going forward. The bias, the risk, the targets are all defined technically.
In the above video, I outline my key technical levels in play on the top and bottom sides for Microsoft and explain why. What would increase the bullish bias and why? What would increase the bearish bias and why? What are key targets in the direction of the break and why? What are the risks?
I go through all that while explaining why, in the above video.
Be aware. Be prepared. It is likely to be a wild one when Microsoft announces after the close tomorrow.
