 Welcome traders to our Tick Mill Earnings Report preview with me Patrick Mungerly. For we jump into today's report, it's important to adhere to the risk disclaimer. Material provided is for information purposes only and should not be considered as investment advice. The views, information and opinions expressed by me in this recording are solely mine. They're not indicative or representative of those held by Tick Mill UK or Tick Mill Europe Limited. Equally important, CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% to 65% of retail investor accounts lose money when trading CFDs with Tick Mill UK or Tick Mill Europe Limited. OK, let's jump into today's report. We are looking at Microsoft to release earnings after the New York closed this evening. Looking for an earnings per share of $2.18 on revenue of $49.03 billion. I would highlight there's a whisper number on the streets of earnings per share, potentially as high as $2.27. In terms of what to look for in the report, the focus is really going to be on Microsoft's Xbox content and services revenue. This key metric measures the performance of Microsoft's Xbox content and services comprising of digital transactions, Xbox Game Pass and other subscriptions, video games, third party video game royalties, cloud services and advertising. Microsoft's pending acquisition of Activision Blizzard, if approved by regulators, will dramatically expand the company's reach in games. Once the acquisition is complete, investors will watch to see how many of Activision's games will be included in Microsoft's Game Pass service, which allows customers to pay a flat fee for access to a library of games. Growth of Microsoft's Xbox content and services revenue has been highly valuable in recent years. The business grew in revenue at more than 30% per quarter during the first three quarters of 2021 at a robust pace, but it flattened out in the fourth quarter, falling by 7%. It posted zero growth in the first quarter of 2022, improving to 10% growth in the second quarter of 2022, with analysts expecting a 5.2% print for the third quarter. Let's now take a look at some of the statistical trading patterns around the earnings release. The stock has moved higher in the immediate aftermath of earnings, 8,000 for the last 12 reports. Some average, the stock moved up 0.4% in the first day of trading after the company reported earnings. Based on the previous 12 earnings released, the stock is more likely to trade higher one day after earnings for an average gain of 0.2%. Stock has moved higher one week after earnings, 10 out of the 12 previous reports for an average gain of 2.5%. In terms of what we can glean from the options market, implied volatility suggests options traders are looking at a 6.9% move on the earnings, but the stock has only averaged a 2.5% move in recent quarters. From a flow perspective and sentiment, quite a decent size bias, 6,145 contracts of the bullish $300 call expiring this Friday. Options order flow sentiment in general is also bullish. Investor sentiment going into the company's earnings release has a 78% expectancy of an earnings beat. Consensus estimates are for year-over-year earnings growth of 11.79% with revenue increasing by 17.56%. A short interest in the company has decreased by 6.5% since the company's last earnings release, while the stock has drifted lower by 11% from its open following the earnings release to be 9.7% below its 200-day moving average at $303.60. So, let's take a look now at the technical setup and see where some trading opportunities may develop post earnings. From a technical perspective, we are in a corrected phase at the moment. Obviously, we have that nice bull run post pandemic lows into the highs printed at the beginning of this year. So, I'm looking for a three-wave corrective move. Well, it's a double correction. It's a WXY pattern I'm looking to trade here. Any short-term pop on the earnings, I'm anticipating will fade and we should see a further decline down through the monthly projected rainfall at $2.69. And then I'm looking to target the quality objective at $238. From there, I watched with bullish reversal patterns to engage on the long side, initially targeting move back up into the high volume load here just below $300 per share. Now, if we get a really strong report and buy a step in in a meaningful fashion, any move back through this high volume load would be constructive. So, any close through $300 would suggest the downside correction is actually complete. Then we will be targeting a move back through $316, the swing pivot there, looking for a retest of the prior highs $349 on route then to an ideal $370. As always traders, plan the trade, trade the plan and most importantly manage your risk. Until next time, thanks very much.