Microsoft Corporation is a technology company. Co. develops and supports software, services, devices, and solutions. Co.'s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions.
When researching a stock like Microsoft, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from MSFT Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for MSFT stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the MSFT 200 day moving average ("MSFT 200 DMA"), while one of the most popular "shorter look-backs" is the MSFT 50 day moving average ("MSFT 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Microsoft. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the MSFT 200 DMA and the MSFT 50 DMA, we get a moving average convergence divergence indicator ("MSFT MACD"). The MSFT MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis