Microsoft Earnings Preview: Can the AI Leader Reignite Excitement in the Tech Sector?

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Microsoft Corporation (Nasdaq: MSFT) is scheduled to release its fiscal Q3 2024 earnings on April 25, 2024, after the market closes. What to expect and watch for?

Since investing heavily in OpenAI to secure the enviable partnership, Microsoft has prioritised the integration of AI into its tech ecosystem. Today, with ChatGPT becoming a household name, bullish investors are eagerly anticipating Microsoft's progress in AI integration into and next strategic moves to capitalize on its leadership in the AI space.

Despite the recent pullback, TipRanks gives MSFT a 'outperform' smart score, meanwhile, 32 out of 34 analysts have recommended a buy in the past 3 months.Looking at the daily chart, the price has experienced two vital breakouts to signal further downtrend could be in the cards, including: breaching the months-long ascending trendline and breaking below the 100-day moving average for the first time in 2024.

Technically, any further downtrend will find imminent support at the $379-$382 zone, where the 23.6% Fibonacci retracement and the previous high converge. A break below this support could open the door to challenge the critical 200-day SMA, unbroken for over a year. On the other hand, the first upside target could be eyed at $415, where the 50-day SMA sits.The figures stated are as of 23 April 2024. Past performance is not a reliable indicator of future performance.

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