Microsoft Is Back to 2024 Levels, But Check Out These Two ChartsMicrosoft CorporationBATS:MSFTmoomooMicrosoft MSFT hit an all-time high last July, but the software-and-cloud giant's stock is down some 14% year to date and trading all the way back at levels previously seen in February 2024. Let's see what the "Magnificent Seven" stock's chart and fundamentals say. Microsoft's Fundamental Analysis Microsoft last reported quarterly results after the bell on April 29, posting $4.27 in earnings per share on $82.9 billion of revenue for its fiscal Q3 ended March 31. That easily beat the Street's expectations for both top and bottom lines, with earnings gaining 23.4% from the same period last year and revenues growing 18.3% y/y. Microsoft Cloud-related revenue increased 29% from the year-ago period, with Intelligent Cloud sales up 30% and Azure revenues gaining 40%. Management also projected Azure's growth rate to run at 40% again during the current quarter, as growing customer demand for all things cloud- and AI-related continue to exceed supply. (Analysts had only been modeling 37% in Azure gains for the current period.) But despite Microsoft's better-than-expected quarterly results and forward guidance, the stock's price has lost about 1.4% in the roughly three weeks since their close on April 29 just prior to the company releasing numbers. Let's see if MSFT's chart can tell us why. Microsoft's Technical Analyst Here's a look at Microsoft's technicals going back some 11 months and running through Tuesday afternoon (May 19): What we have here looks like a battle between two technical patterns trying to push MSFT in opposite directions. First, Microsoft hit a patch of weakness in response to a double-top pattern of bearish reversal that ran from last July through this past November (marked with red diagonal lines and pink shading at the chart's left). But since then, the stock has reclaimed both its 50-day Simple Moving Average (or "SMA," marked by a blue) and its 21-day Exponential Moving Average (or "EMA," denoted by a green line). That said, Microsoft has had trouble consistently holding onto the 21-day EMA. That could mean that professional managers are on board with the stock, but some swing traders have probably traded in and out of the stock rather than investing in it for the longer term. Meanwhile, readers will also see that Microsoft appears to have formed a second double-top beginning in April, as denoted by red diagonal lines and pink shading at the chart's far right. That's a bearish signal. In fact, the stock has run into stiff resistance at the 38.2% Fibonacci retracement level of Microsoft's October-through-late-March sell-off, as marked by gray shading at the chart's right. This would normally be a bearish technical sign as well. However, Microsoft's Relative Strength Index (or "RSI," marked with a gray line at the chart's top) seems rather robust, as well as nowhere near being technically overbought. Still, the stock's daily Moving Average Convergence Divergence indicator (or "MACD," denoted by blue bars, a black line and gold line at the chart's bottom) is looking a little sloppy. For one thing, the histogram of the 9-day EMA (the blue bars) stands close to the zero bound, which is a neutral technical signal. Nonetheless, the 12-day EMA (the black line) and 26-day EMA (the gold line) are both running above zero. That's positive technically. Of course, the black line is running just below the gold line, which is a bearish signal. But if the black line can rise above the gold one, that would suddenly become a bullish technical sign. Then again, check out this Microsoft chart: What if that second double top isn't a double top at all, but rather an inverse head-and-shoulders pattern? Marked with green lines above, this pattern indicates a $433 potential pivot point. Such a technical set-up would be overtly bullish -- and would likely allow analysts to give Microsoft higher target prices. (Moomoo Technologies Inc. Markets Commentator Stephen "Sarge" Guilfoyle had no position in MSFT at the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. Moomoo and its affiliates make no representation or warranty as to the article's adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC. TradingView is an independent third party not affiliated with Moomoo Financial Inc., Moomoo Technologies Inc., or its affiliates. Moomoo Financial Inc. and its affiliates do not endorse, represent or warrant the completeness and accuracy of the data and information available on the TradingView platform and are not responsible for any services provided by the third-party platform.