MSFT looks bearish: broad market selling is expected and MSFT should lead it, so its pullback reflects the market, not Microsoft alone; timing is uncertain, giving a little over 60 days. At resistance after retesting $540-$550, a decline is possible in the coming weeks, though MACD is bullish.

Here we have Microsoft stock, and Microsoft's earnings are much closer than the other two stocks . They are at the end of the month, on the twenty- eighth of it. They are currently in the middle of the rankings for May 7.

I think they are exactly in the middle . But how do you deal with Microsoft now?

Yes, again , as you mentioned a moment ago, this would be a bearish deal for Microsoft. Look, Microsoft at this point, I think we can make a lot of technical arguments to explain why they bought it.

Look, there aren't many alternatives to invest in. I mean, you know, it's bad to start buying Walmart again . I don't think this is necessarily a positive sign. I don't think our purchase of Microsoft is a positive sign either.

Didn't I hear a few weeks ago that the software industry was completely finished? Of course , you would then argue that Azure would save Microsoft. Look, neither this nor that.

The reason behind my stance towards Microsoft is my belief that we are about to witness widespread sales activity in the market. Therefore, this latest deal, this downward move on Microsoft shares, goes beyond Microsoft alone; it concerns the market as a whole.

We have witnessed these fluctuations daily. Look at the advanced downward trend line today. We still see a leading 50/50 downward trend line, but the S&P 500 is facing a loss of nearly 1%.

The Nasdaq index is currently down 1.2% with a 50/50 leading down line. These fluctuations must stop. I believe Microsoft will be at the forefront of this change. You will know when they start selling shares of Microsoft, Apple, and Nvidia, then the market as a whole will start to decline.

Microsoft, again , we could argue all day about whether the software sector is dead or not, but as I mentioned, it is currently trading at least. When the market realizes that, yes, there is a slight downward trend , well, Microsoft shares will be sold accordingly.

For this reason, I will continue trading until the expiry date D18. The reason I chose this distant date is that I believe the entire market will experience selling, but ultimately I cannot pinpoint the exact timing.

Therefore, I will give myself a little over 60 days. I will buy put options at 520, and sell put options at 510 in return. It's a large- scale $10 selling strategy, at a cost of $3.10.

Yes, I am at peace and I don't have a specific destination right now, Marley.

But there is a long- term deal on this stock when the earnings announcement comes around, KG, but after that, I'll need some time to think , more than a month in fact after the earnings report comes out .

What do you see in Microsoft's technical analysis, Kevin?

Well, Don, it seems there's competition at Walmart. I mean, Don, that makes some sense, doesn't it? A basic consumer company that trades at a multiple of 37 in this type of market.

As you know, I understand your point of view. Look, Microsoft seems to be in a good position, but there could be a price drop. If you are optimistic, you might want to see a decline in the price of this stock.

This was a prelude to the kind of breakdown we saw around this time last year, where we recorded lower highs and lows, taking advantage of the 200-day moving average for about a month and a half to two months before the crash.

We saw a double bottom pattern at around the $350 level , and we were able to try to recover some of those losses. Now, the gains we've seen have been faster compared to what we've seen in the past, and we're now retesting the $540-$550 area around.

Yesterday, we saw another shooting star pattern, with a slight reversal, and today we are heading for a downward move of approximately 1%, but we have a support zone around $523.

This is the channel line in which Microsoft shares have settled over the past two months, roughly between August and October. But if we go below that, we will find the 20-day moving average, and then the 50-day moving average.

The Relative Strength Index (RSI) here is a bit unique; we have recorded lower highs, but we still have higher lows. The MACD indicator is in an upward formation, with the 12-day exponential moving average (EMA) above the 26-day EMA.

This is a basic pattern. That's why I say, if you're optimistic, you'll like to see the price pull back a little and form a cup and handle pattern on the weekly chart. This is what we can move on to later: the weekly chart shows a potential breakout, and possibly a potential rejection.

But even if we go back, and the price perhaps stabilizes around the 480-485 area , and then we try to go up, that might give you enough momentum to break out. The Relative Strength Index (RSI) is making higher lows, and the MACD is in a bullish formation, with the 12-day exponential moving average above the 26-day exponential moving average .

This is a significant stability and a potential breakthrough. But again, I think the speed of the move is more worrying than the current stock price, and I agree with him technically, as the stock has reached a resistance zone.

Let's wait and see if there's a possible decline in the coming weeks.

Well, Microsoft's stock is currently down about 1% during the session to 537.98, and we also recall the earnings announcement event on October 28.