 Welcome traders to another Tick Mill earnings report preview with me Patrick Memoly. Before we jump into today's report, as always, I want to adhere to the risk disclaimer. The most pertinent to today's presentation, the fact that the views and opinions expressed by me are solely mine, they're not indicative or representative of those held by Tick Mill UK or Tick Mill Europe Limited. Okay, let's jump into today's report. Today we are looking at Microsoft, Microsoft set to announce earnings after the New York closed today. Looking for an EPS, earnings per share of $2.28 on revenue of $52.87 billion. Microsoft has posted robust profit and revenue growth in recent years, including amid the global pandemic, but strong US dollar and unusually high inflation are curbing Microsoft's growth outlook. In early June, the company lowered guidance for the fiscal Q4, which ended in June 30. Microsoft is also fighting against anti-trust complaints in Europe over competition among cloud service providers, which could rein in the company's growth even further. Investors will be watching closely to see how Microsoft has navigated these and other challenges when the company reports this evening. Microsoft's fiscal year ends on June 30. Analysts predict tepid performance by Microsoft's standards, adjusted EPS and revenue are both expected to grow at the slowest pace in recent quarters. Investors will also focus on revenue growth in Azure and other cloud services. Azure is a cloud platform that offers developers, IT professionals and enterprises a suite of tools and services that can be used for network, storage, mobile, web application services, AI, Internet of Things and a range of other computing needs. As of the end of the fourth quarter 2021, Azure had share of roughly 22% of the global cloud market, ranking it second behind Amazon.com's Amazon Web Services. Cloud computing market is growing quickly and Azure is growing at a faster pace than Microsoft as a whole. However, Microsoft still has to compete with Amazon and Alphabet and a variety of small arrivals. This is especially important as work from home and hybrid work arrangements begun during the pandemic have staying power which could boost the market for cloud services. Microsoft's Azure and other cloud services businesses has grown at a substantial pace more than tripling quarterly revenue in just three years. As revenue has increased, the pace of growth has slowed. In the Q4 fiscal year 2019, for example, Azure and cloud revenue grew by 63% year-over-year. Although sales have remained strong, they have failed to reach that same growth rate in the subsequent reported quarters. Growth has significantly slowed in recent quarters from 51.2% in Q4 2021 to 44.7% in Q3 2022. Now, and this expect growth to further slow to 43% in Q4 2022. Let's take a look at some of the statistical trading patterns around Microsoft earnings releases. Microsoft shares have moved higher in the immediate aftermath of earnings 8 out of 12 previous reports. On average, the stock moved up 0.5% in the first day of trading after the company reported earnings. Based on the previous 12 earnings releases, Microsoft is more likely to trade higher one day after earnings for an average gain of 0.3%. On average, the stock has moved higher by 2.9% one week after earnings. Now, from a volatility perspective, let's see what the options market is telling us. Options traders pricing in a 5% move on earnings. However, stock has only averaged a 2.5% move in recent quarters. Finally, from a flow and sentiment perspective, there has been some notable buying 7,759 contracts of the $270 call expiring on Friday. Options order flow in general though has been bearish. Investor sentiment going into the company's earnings release has 63% expecting an earnings beat. Microsoft's share price has drifted down 7.9% post earnings announcements. Using the last 12 quarters of data, the average drift between earnings announcements is 7%. Let's pull up the charts now and see if we can identify any near-term trading opportunities that may be available to us in the stock. If we look at the general pattern here, what I'm tracking is a weekly ABC corrected pattern that has a downside equality objective $236. Now, if we move to the data chart, we can see we're consolidating in a triangle. Now, if the earnings come in and there's some decent guidance and we get a pop here, I'd be using any strength into the $275 level to watch for bearish reversal patterns to engage on the short side targeting that $236 test to the downside. If the earnings come in weaker and the guidance is lowered, then any move down through the triangle trend line support at the $245 level again I'll be engaging on the short side targeting that $236. Now, once we get there, I'm going to be paying very close attention on both the daily and the weekly charts for any bullish reversal signals because this could suggest the technical trade setup in terms of the correction is complete and then we could be thinking about upside objectives back into that trend line resistance coming in at the $270 level again. At this stage, any loss of the $230 level would be a meaningful bearish development opening a move down to the high volume mode on the weekly chart here at $240. As always traders, plan the trade, trade the plan and most importantly, manage your risk. Until next time, thanks very much.