Microsoft Corporation, #MSFT [NASD]
Technologies, Software & Services, USA

Financial performance of the company:
Index – DJIA, S&P 500;
Beta – 0.93;
Capitalization – 411.28 В;
Return on asset – 6.50%;
Income – 25.7 В;
Average volume – 39.67 М;
P/E – 37.14;
ATR – 1.52.

Analytical review:

  • The company ranks the fourth on capitalization among the issuers traded in the American stock market;
  • Over the past two months the key levels of support and resistance were at the levels of 49.40 USD and 52.50 USD. The issuer has repeatedly tested the levels. Currently, the stocks are traded at the lower limit of the trading range;
  • Company’s last report was not very optimistic. Company’s revenue fell by over 5%. EPS (earnings per share) amounted to $0.47 against $0.61 over the same period a year ago. At the moment, Microsoft Corporation is refocusing its business, investing heavily in the development of high-tech subdivisions of the company (cloud service and mobile app);
  • The company recently signed a contract buy the social network LinkedIn (#LNKD - NYSE) for the amount of 26.2 billion USD. This social network has more than 400 million users in 200 countries. It is expected that the deal will be finalized by the end of 2016;
  • Microsoft Corporation is attractive for long-term investments. The company duly pays off dividends to its share holders. Dividend yield of the company is 2.87%, which is higher than in the similar companies in the industry (1.65%);
  • Large investment funds and banks (BMO Capital Markets, Macquarie, RBC Capital) predict the rise in company’s stocks up to 57-58 USD per share.

Summary:

  • Company’s last report showed the decline in the financial performance amid significant spending on business diversification and innovations. However, company has strong growth potential The company continues to invest large funds to hi-tech companies and development of new technologies.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Microsoft Corporation

Key levels:
Support level: 49.40 USD
Resistance levels: 51.60 USD and 52.50 USD.

Medium-term trading, Н1
The issuer is traded near demand zone of 49.40-49.95 USD. If the price maintains these levels and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed at the levels of 51.50 USD, 52.80 USD and 54.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, M15
At the moment the issuer is traded between support and resistance levels of 49.55/50.45 USD. It is recommended to enter the market after breaking out and testing of these levels. Positions shall be opened toward the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. . Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, M15
Short-term trading, M15




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