TRADE SETUP MSFT (MICROSOFT CORP)

Where do we stand fundamentally?

Reports emerged today, March 27, 2025, that Microsoft has abandoned several data center projects in the U.S. and Europe. Sources like Bloomberg and Reuters note that the company has pulled back from leases, with TD Cowen analysts highlighting this shift. This move has raised eyebrows, especially given Microsoft’s heavy AI investments, though the company claims its existing infrastructure is sufficient to meet current demand. Posts on X reflect investor speculation about potential stock impacts, with some seeing it as a bearish signal.

On March 19, 2025, Microsoft hosted its 15th annual Ability Summit, showcasing AI-driven accessibility innovations. With over 20,000 attendees from 164 countries, the event underscored Microsoft’s commitment to multimodal AI experiences (e.g., using images, audio, and video alongside text). This aligns with broader AI efforts, like its partnership with Amorepacific for an AI Beauty Counselor, announced on March 26, 2025, via Microsoft’s official channels.

MSFT is testing the strong downside resistance of 380 after possibly setting a fifth-wave long-term top. A break below 380 will lead to an acceleration of a downside reversal and a test of 300.

The indicated scenario above would be invalidated only in the case of a break above 415. MSFT is in the short-term downside trend, which could develop further and continue.

_{I am taking a near-term short-trade entry with an SL above 410 to target 317 and possibly lower. You can also trade it with options by buying put options.}