July 30 Chart of the Day - Microsoft

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Tech giant Microsoft (MSFT) has been in the headlines recently with respect to the recent Global IT outage and their stock price has since "gotten a haircut" as they say.

The company reports earnings Tuesday July 30 after market close so we wanted to review their chart from a price action technical analysis perspective.

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Monthly Chart 

On the monthly chart we can see that after setting its $468.35 all time high (ATH) earlier this month price is falling dramatically in "free fall like mode" searching for a  bottom.

The bulls have yet to step in with any lasting conviction.

Weekly Chart

 
On the weekly chart we can see with much more clarity the dramatic fall from ATHs and where price briefly shot up near $470 then reversed starting a downward cycle.

Trading around $418 earlier today price has been attempting to find a definitive bottom but has yet to prove it so far by not producing a series of higher highs and higher lows.

The market is implying about a $22.75 move in either direction as marked on the weekly chart by this Friday August 2.  Share price has risen during the week of earnings 4 of the last 8 quarters.

Could earnings be the catalyst that definitively sets the bottom to raise price firmly back to the upside or will it continue falling?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next?