Unlike my usual Trade setup, I have much more tolerance for my long-term holding that isn't just based on Technical alone. This is because I am usually buying in small batches on dips rather than placing a big lump sum at one go.
Microsoft has so far shown strong earnings and fundamentals. Unlike other growth companies like NVDA or TSLA which have ridiculous P/E, MSFT P/E is at 35. From the perspective of a US Growth/Tech company, this is a steal. Of course, fundamentals are more than just earnings and P/E ratios. This is not my area of expertise. There are many great fundamental analysts out there that can provide you with a deeper understanding of Microsoft's business
Crucial Support levels are at 320, 280, and 250. These are levels where I personally would Buy On Dips.
The "Oh No!" zone at price 197 - 227 is crucial. This is where, instead of blindly buying on dips due to CoNvIcTiOn, we might want to relook into Microsoft's business and the overall markets. Is the broad market dropping? Is there a catalyst that is causing the market to fall? If Microsoft is dropping along with the board market, while still being able to maintain its earnings, then we are fine. We will look at more buy on dips opportunity.
However, if Microsft's earnings took a hit while the overall market is doing good. Then we will consider cutting it.
Until then, buy in small batches for your long-term holding. Do manual Dollar Cost Average!