Will the 200 day EMA save Microsoft?

2022년 1월 22일

Microsoft looks technically interesting. On one hand a double or even triple top argument could be made that flushed the stock down lower after it rallied to break a multi-year resistance TL but failed to hold it, and on the other hand it has not made any multi-month lower lows since September 2020. Stock holders are hoping that 294 will find buyers at the 200 day EMA ahead of earnings but it does not appear that there are any buyers in-sight just yet. 289/290 if reached next week will coincide with March 2021 TL support followed by much bigger support around 280/282 if we get there, where major bounces are expected. The intriguing question will be if buyers are willing show up aggressively under the 200 day to act on these supports because if not, 260 will not be far from reach. Upcoming earnings will determine the longer-term picture.


Is Microsoft in a bubble? Is it overvalued? Judge for yourself.

Microsoft PE Ratio as of January 21: 33.11
PE Ratio Range in the Past 5 Years:
Minimum: 22.35, JUL 03 2017
Maximum: 62.43, MAR 12 2018
Average: 34.68
Median: 32.84