Hello everyone! In today’s article, we’ll examine the recent performance of Microsoft Corp. ($MSFT) through the lens of Elliott Wave Theory. We’ll review how the rally from the July 23, 2025 low unfolded as a 5-wave impulse followed by a 3-swing correction (ABC) and discuss our forecast for the next move. Let’s dive into the structure and expectations for this stock.
5 Wave Impulse Structure + ABC correction
$MSFT 1H Elliott Wave Chart 7.28.2025:
In the 1-hour Elliott Wave count from July 28, 2025, we saw that $MSFT completed a 5-wave impulsive cycle at black ((i)). As expected, this initial wave prompted a pullback. We anticipated this pullback to unfold in 3 swings and find buyers in the equal legs area between $511.32 and $508.13
This setup aligns with a typical Elliott Wave correction pattern (ABC), in which the market pauses briefly before resuming its primary trend.
$MSFT 1H Elliott Wave Chart 7.28.2025:
The next update, shows the stock is finding support from the equal legs area as predicted allowing traders to get risk free. The stock has traded into new all time highs and is expected to remain supported against April 2025 low.
Conclusion
In conclusion, our Elliott Wave analysis of Microsoft Corp. ($MSFT) suggested that it remains supported against July 23, 2025 lows. By applying Elliott Wave Theory, traders can better anticipate the structure of upcoming moves and enhance risk management in volatile markets.