Score 8.3 (out of 10): MICROSOFT CORP sets up for +12.2 rally in 3 months

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What’s Going On Here?

MICROSOFT targets cloud laggards to make a broader industry push and win more clients. Some industries, like manufacturing have been slow to utilize the cloud infrastructure. This strategy is similar to other major cloud computing providers – such as Oracle and Alphabet.

Why Now?

MICROSOFT CORP has triggered a new high volatility signal (1 month). During similar occasions, MICROSOFT CORP shares had a median return of +12.2%, over the following 3 months – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for MICROSOFT CORP received a high score of 8.3 (out of 10). This insight was generated on 2021-December-15 with last price of 334.65.

What’s This Company About?

MICROSOFT CORP is in the Applications Software business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 8.6% more (average). Ticker symbol: MSFT US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 375.38 (+12.2%) has been reached. Based on MICROSOFT CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 316.45 (last price at 334.65), which is equivalent to a -5.4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

25.1% (April-2020), -1% (February-2020), 16.1% (December-2018), -1.9% (October-2018), 12.1% (April-2018), 9.3% (February-2018), 12.2% (October-2017), 27.1% (September-2015), -4% (April-2015), 15.2% (January-2015)

Historical Chart:

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Summary:

NameMICROSOFT CORP
ViewUp
Star (1 to 10)8.3
Target+12.2%
Time3 months
Hit Rate70%

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