KOBIPC Analysis

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

The Ichimoku Cloud

The Ichimoku Cloud is a technical analysis tool used to gauge market trends, momentum, and potential support/resistance levels in trading. It consists of five lines that create a "cloud" on a price chart, helping traders make decisions. Here's a simple breakdown:

• Tenkan-Sen (Conversion Line): A short-term trend indicator, calculated as the average of the highest high and lowest low over the past 9 periods.
• Kijun-Sen (Base Line): A medium-term trend indicator, calculated as the average of the highest high and lowest low over the past 26 periods.
• Senkou Span A (Leading Span A): Forms one edge of the cloud, calculated as the average of the Tenkan-Sen and Kijun-Sen, plotted 26 periods ahead.
• Senkou Span B (Leading Span B): Forms the other edge of the cloud, calculated as the average of the highest high and lowest low over the past 52 periods, plotted 26 periods ahead.
• Chikou Span (Lagging Span): The current closing price plotted 26 periods behind, showing potential support/resistance.

How to Interpret the Cloud:

• Price Above the Cloud: Indicates an uptrend.
• Price Below the Cloud: Indicates a downtrend.
• Price Inside the Cloud: Suggests consolidation or indecision.
• Cloud Thickness: A thicker cloud indicates stronger support/resistance, while a thinner cloud suggests weaker levels.

Ichimoku Cloud used to identify trends, entry/exit points, and potential reversals.

Microsoft Corporation Ichimoku Cloud

The Moving Average

The Moving Average (MA) is a widely used technical analysis tool that helps traders and investors identify trends and potential support/resistance levels by smoothing out price data over a specific period. It is a lagging indicator, meaning it is based on past prices, and is used to analyze the direction and strength of a trend:

• Simple Moving Average (SMA): The SMA is calculated by taking the average of a set of prices over a specific number of periods. Example: A 10-day SMA adds up the closing prices of the last 10 days and divides by 10.
• Exponential Moving Average (EMA): The EMA gives more weight to recent prices, making it more responsive to new information compared to the SMA. Example: A 10-day EMA places more emphasis on the most recent prices than the SMA.
• Weighted Moving Average (WMA): The WMA assigns a heavier weighting to more recent data points, similar to the EMA, but the weighting decreases linearly.

Uses of Moving Averages:

• Price Above the MA: Indicates an uptrend.
• Price Below the MA: Indicates a downtrend.
• Price oscillates around the MA: Suggests consolidation or indecision.
• Moving averages can act as dynamic support (in an uptrend) or resistance (in a downtrend).

Example: 50-day SMA can be used to identify the overall trend and a 10-day EMA for short-term entry/exit signals. If the 10-day EMA crosses above the 50-day SMA, it could signal a buying opportunity.

Microsoft Corporation Moving Average