Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of Microfost published in members area of the website. As our members know, Microsoft is showing impulsive bullish sequences and we’ve been calling rally in the Stock. $MSFT recently made ((4)) pull back. We expected the Stock to find buyers at the extreme zone from the 306.11 peak. In the further text we are going to explain the Elliott Wave forecast .
Microsoft Elliott Wave 4 Hour Chart 09.30.2021
At the chart below we can see ((4)) pull back reached extreme zone Blue Box at 284.8-274.4 area. As the main trend is bullish, we expect buyers to appear at the marked zone for further rally toward new highs ideally. We don’t recommend selling the Stock and favor the long side from the blue box area. Invalidation for potential long trades would be break below 1.618 fib ext: 274.47. As the main trend is bullish, we expect to get a 3 waves bounce at least. Once bounce reaches 50 Fibs against the (B) blue high, buyers should ideally make long position risk free ( put SL at BE).
As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
Microsoft Elliott Wave 4 Hour Chart 10.14.2021
The stock found buyers as we expected. We got nice reaction from the blue box . At this moment rally exceeded 50 fibs against the (B), so any long trades from the blue box should be risk free at this stage. Wave ((4)) pull back is completed at 279.47 low. Now we would like to see break of 08/20 – ((3)) black high, to confirm next leg up in progress. We don’t recommend selling the stock, while keep favoring the long side.
Microsoft Elliott Wave 4 Hour Chart 10.21.2021
Eventually the price broke above 10/20 peak, confirming next leg up is in progress. Now the stock is bullish against the 279.47 low. It’s expected to keep finding buyers in 3,7,11 swings.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent updates in the membership area of the website. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
Elliott Wave Forecast