This is what we discussed yesterday before earnings:
-- The near-term set-up heading into earnings later this afternoon:
-- Trend: bullish/peaking
-- Momentum: waffling, and set-up for an upside non-confirmation of a knee-jerk thrust to a new high above 56.92
-- Only a sustained break of support at 54.20-53.80 will compromise the extreme, near-term trend
-- A break of 52.00 - 51.00 is required to damage the intermediate-term uptrend... MJP 4/21/16
My post-EPS outlook continued below...
Earnings disappointed, and sure enough, Microsoft Corporation (MSFT) plunged 7%-- right to a test of its up-sloping, 200-Day EMA, now at 51.15, which must contain the weakness to avert downside continuation that revisits the Feb pivot low around 48.00.
The big problem now is that the larger pattern from last Oct has morphed into a potentially-significant, major, double-top formation that in the absence of an immediate recovery above 53.75, will put increasing downward pressure on a retest of critical support at the Feb low of 48.19 to complete the topping process. MJP 4/22/16