As explained in a previous supply and demand stock forecast for Microsoft Corp (NASDAQ: MSFT), we were expecting price to pull back to a strong imbalance around $139 per share and that’s what it has ben doing for more than two months since that price level was reached last March 2020.
Microsoft Corp (NASDAQ: MSFT) is clearly uptrending, if you are not aware of these imbalances in the bigger timeframes you will probably be selling short shares of Microsoft stock or using bearish option strategies that will end as losses for the same reason.
An image is worth a thousands words, so it’s better than you take a look at the updated Microsoft stock supply and demand technical analysis and forecast in the screenshot below representing the monthly timeframe.
I’ve also recorded a video analysis update for Microsoft stock, watch it below if you have a few minutes to spare.
There are many news and fundamental analysis you could read about Microsoft stock, will it really matter when it comes to making a trading decision? Not really! I could show you hundreds of examples where you will see that fundamental analysis was priced in the price of the underlying stock and a strong imbalance just took control and price moved with it disregarding any fundamental analysis.
Will it matter if Microsoft Corp said that it would create its first data centre region in Italy under a $1.5 billion investment plan as the U.S. company expands its cloud computing services to more locations across the world?
Microsoft’s rival Amazon Web Services last week opened a data centre region in Milan, while in March Google’s Inc sealed a partnership with former phone monopoly Telecom Italia to expand cloud business operations in Italy. Analysts expect the Italian cloud market to grow at a double digit pace in the next few years as companies, will this help Microsoft? Most likely. But it has nothing to do with where and how supply and demand imbalances are created.
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