Microsoft is expected to report earnings of $2.55 on revenue of $55.44bn. Currently trading at around $346.17 a share.

Microsoft currently trading at around $346.17 a share. We can see that there has been a slight retracement over the last few trading sessions after some profit taking took place, MSFT set a new high of $366.75 (green oval) last Tuesday. The stock is still clearly in a bullish trend and this retracement is not necessarily a sign of further downside, but let’s take a look at the support levels below. The first support level sits at $341.16 (orange oval), followed by support sitting along the trendline at $337.51. A break and close below the trendline may be an indication that some more downside is possible, this would be more likely if the earnings report came in worse than expected. On the other hand, as the bias remains bullish, resistance now sits at $350.39 then at $351.74. A break above $351.74 would then allow us to look towards the high of $366.75. Regarding the technicals, the volume of MACD has turned flat with the MACD line potentially turning negative. But the RSI still remains positive as it reads 55, only just. Microsoft is expected to report earnings of $2.55 on revenue of $55.44bn.