Microsoft Terminates External Data Center Agreements

Microsoft's termination of external data center agreements could create uncertainty about growth expectations in the short term and generate mild selling pressure. The price is below the 20-day SMA (542.7) and very close to the 50-day SMA (530.3); this level is a critical support. RSI at 44 is in the neutral-weak zone and below the MACD signal line, indicating weak momentum. Despite a 2% rise over 24 hours, the possibility of the news being perceived negatively could pull the short-term direction lower. Nevertheless, the impact may be limited; if the price holds above the 50-day SMA, selling pressure could ease.

Microsoft's termination of external data center agreements is creating uncertainty in the cloud and data center supply chain; it may be perceived as negative in the short term for infrastructure and cloud players like ORCL. However, the news is not specific to ORCL; it is a sector-wide reflection. The technical picture is already weak: the price is below the SMA20 and SMA50, there is an 8.5% decline in 24 hours, and the MACD is in negative territory. The RSI at 38.8 is close to the oversold threshold; this suggests that part of the sharp decline may already be priced in and increases the risk of rebound buying. Therefore, although I see the direction as downward, I keep confidence at a moderate level.