The partnership between Microsoft and the owner of ChatGPT owner OpenAI faces a potential EU merger probe.

FUNDAMENTAL OVERVIEW:

The European Union is examining Microsoft’s (NASDAQ: MSFT) $13 billion investment in OpenAI, the owner of ChatGPT, and may initiate an extensive merger investigation.

The European Commission is examining whether this significant investment aligns with the merger rules of the EU. If it satisfies the requisite conditions, a formal probe is possible, as reported by Bloomberg News today.

This mirrors a comparable action by the UK’s Competition and Markets Authority. Microsoft’s substantial investment in OpenAI has strengthened its supremacy in AI, as it seamlessly incorporates OpenAI’s products into its core operations, outpacing rivals such as Alphabet’s Google.

“We encourage businesses and experts to inform us about potential competition issues in these sectors. Simultaneously, we are vigilantly monitoring AI partnerships to ensure they do not unfairly disrupt market dynamics,” stated Margrethe Vestager, the EU’s competition commissioner, as reported by Bloomberg News.

In the early trading session on Tuesday in New York, Microsoft’s stock experienced a 0.5% decline.

MICROSOFT TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Microsoft is currently trading within a up channel.

Microsoft is positioned above all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Neutral trend.

Immediate Resistance level: 373.40

Immediate support level: 366.50

HOW TO TRADE MICROSOFT

Following a significant upward movement, Microsoft’s price has entered a consolidation phase. Currently, it has established support and is rebounding. The price is now approaching a resistance zone, and a breach of this zone could signal further upward momentum.

TRADE SUGGESTION- STOP BUY– 376.17, TAKE PROFIT AT- 384.72, SL AT- 371.47.