We believe Microsoft (MSFT) has formed a higher trough - a bullish sign. Its EMAs have crossed positively, and the RSI has moved above 50, signalling improving momentum. If the RSI holds above that level, it will confirm a strengthening trend that could see MSFT challenge resistance near $530.
The company reports next Wednesday after the close, with investor attention centred on Azure and Copilot - the pillars of its AI strategy. Copilot, now embedded across Microsoft 365, Teams, and Outlook, is gaining strong enterprise adoption; for instance, Barclays recently expanded its licences from 15,000 to 100,000. The AI assistant could generate billions in recurring revenue, while Azure - which grew 39% year-on-year last quarter, its fastest pace in three years - remains the primary growth driver. Sustained progress in both areas will be crucial for maintaining investor confidence.
Although momentum has yet to reach full strength for a decisive breakout, it is clearly building. Next week’s earnings could provide the catalyst needed to push it over that threshold.
The company reports next Wednesday after the close, with investor attention centred on Azure and Copilot - the pillars of its AI strategy. Copilot, now embedded across Microsoft 365, Teams, and Outlook, is gaining strong enterprise adoption; for instance, Barclays recently expanded its licences from 15,000 to 100,000. The AI assistant could generate billions in recurring revenue, while Azure - which grew 39% year-on-year last quarter, its fastest pace in three years - remains the primary growth driver. Sustained progress in both areas will be crucial for maintaining investor confidence.
Although momentum has yet to reach full strength for a decisive breakout, it is clearly building. Next week’s earnings could provide the catalyst needed to push it over that threshold.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.