 Welcome, traders, to another TickMeal earning season preview with me, Patrick Munnerly, for which I'm into today's report. As always, once we're here, it's that risk disclaimer. Most pertinent to today's presentation is the fact that views and opinions expressed by me are solely mine. They're not indicative or representative of those held by TickMeal UK or TickMeal Europe Limited. So, for today's report, we are looking at Microsoft. Microsoft are set to announce earnings after the close of trading in New York today. We are looking for a consensus EPS of $229 on revenue of $53 billion. Microsoft likely recorded its slowest sales growth in more than six years last call. So, as economics concerns, cool demand for its software and cloud services, the Redmond Washington firm's revenue growth is expected to show less than 3% in the three months through to December 31, compared with a year earlier, while its net income is expected for more than 8% according to analysts at FACTSET. Software giant is the first of the tech titans to announce earnings for the quarter. It's another sub-recently announced layoffs of thousands of people to reflect a sudden lowering of expectations about future demand. Last week, the company announced plans to eliminate 10,000 jobs in response to the global economic slowdown, companies' largest layoffs in more than eight years. In a blog post to employees, chief executive Satya Madela pointed to the shaky economy, saying companies globally have begun to exercise caution as some parts of the world are in recession and other parts are anticipating more. Microsoft's intelligent cloud division, which contains its Azure cloud computing business, saw spike during the pandemic as app usage increases. The usage has since cooled and customers have begun more circumcept about the cloud bills. The company has been betting the next wave of demand for cloud services could come from more companies than people using artificial intelligence. It has been deepening its relationship with AI startup OpenAI, company behind the image generator Dolly 2 and the technology behind chat GPT, which can answer questions and write essays and poems. Video games and Microsoft Xbox video game consoles are increasingly important business for the company. Video gaming industry is going through a slowdown as pandemic related restrictions ease and people spend less time at home. It could also hurt as consumers start to spend less in that area. The company has made a huge bet on the sector. A year ago, it's $75 billion plan to acquire video game giant Activision Blizzard. Last month, the Federal Trade Commission sued to block the acquisition, saying the deal would give Microsoft the ability to control how consumers beyond users of its Xbox console and subscription service access Activision games. Microsoft then filed a rebuttal saying the deal won't hurt competition in the video gaming industry. It could take months before a decision is reached in the U.S. and elsewhere, whether the deal will actually go through. Let's take a look at some of the statistical trading patterns around Microsoft earnings. Microsoft shares have moved high in the immediate aftermath of earnings, 7 out of 12 previous reports. On average, stock has moved at 0.2% in the first day of trading after earnings are announced. Based on the previous 12 earnings releases, Microsoft is more likely to trade higher one day after earnings for an average gain of 0.2%. On average then, the stock has actually moved higher 2.4% one week after earnings. In terms of the analyst community, we can see Microsoft remains a strong buy given the 53 analysts giving coverage to the stock. In terms of the 12-month forecast with the minimum downside of the $212, maximum upside $385, with an average sitting around $284, given our current closing price in and around the $240 area. Moving to the options market and getting a sense of sentiment and flow perspective, options traders are looking for a 4.9% move on earnings and the stock has actually averaged 3.5% move in recent courses. There has been some notable buy in 29,448 contracts of the $260 call expiring this Friday. Options order flow sentiment in general has been bullish. With investor sentiment though, however, looking at only 39% expecting a beat on the earnings. Put to call ratio, 47.5% puts with 52.5% calls is the actual reading there. The predicted move post earnings announcement is a 4.9% move, like I say, but the average is that 3.4%. Let's pull up a chart here and take a look and see if we can identify any near-term trading opportunities. I'm looking at any move through resistance at a $245 level. Next upside objective for me is going to be the $252 level. From there, as the $245 area support, I'm actually looking to move up into range resistance at that $260 to $269 level. That's going to be key because we'll be challenging weekly trends, channel resistance there. If we break through there, I would anticipate we make a move up into the $285 to $290 area. For now, that test at that late $260 area is going to be pivotal because if this move that we are currently in seems to just be corrected, it would be from there that longer term sellers in stock may look to step back in as we do have a quality target, a WXY pattern which has $187 as the downside objective. If Microsoft learning is coming on the weak side and guidance is weak, I'd be looking, like I say, any move through that $213 level. I'd certainly be looking to deploy short exposure there and we'd be looking for that test at the $187. For now, focus is on the upside and we're looking for a breakthrough resistance at $246. As always, traders, plan the trading, trade the plan, and most importantly, manage your risk. Until next time, thanks very much.