Score 9.4 (out of 10): MICROSOFT CORP poised to rally +11.9% rally in 3 months

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What’s Going On Here?

Microsoft has hired a key Apple engineer to design server chips. Microsoft appears to be working on in-house processors for the servers running its cloud-computing services and Surface line of personal computers

Why Now?

MICROSOFT CORP has reached a new medium term low. Previously, during similar occasions, MICROSOFT CORP shares had a median return of +11.9%, over the following 3 months based on 8 historical occasions with 8 of those showing positive returns (100% hit ratio). This buy signal for MICROSOFT CORP received a high score of 9.4 (out of 10). This insight was generated on 2022-January-13 with last price of 310.2.

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 0% (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 347.2 (+11.9%) 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 307.7 (last price at 310.2), which is equivalent to a -0.8% 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:

9.1% (September-2020), 25.1% (March-2020), 4.3% (October-2018), 13.7% (April-2016), 7.2% (January-2016), 25.8% (August-2015), 10.2% (April-2015), 15.2% (January-2015).

Historical Chart:

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Summary:

NameMICROSOFT CORP
ViewUp
Star (1 to 10)9.4
Target+11.9%
Time3 months
Hit Rate100%

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