Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of Microsoft Stock ($MSFT). As our members know, MSFT has been showing bullish impulsive sequences within the cycle from the March 132.66 low, calling for further rally. Consequently we expected the Stock to find buyers in 3 waves pull back against the 183.21 low. Pull back unfolded as Elliott Wave Zig Zag pattern ((A))((B))((C)). In the further text we are going to explain the Elliott Wave Pattern and the Forecast.
Before we take a look at the real market example, let’s explain Elliott Wave Zigzag pattern.
Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.
Microsoft Elliott Wave Analysis 06.28.2020
$MSFT is doing correction against the 183.21 low. First leg ((A)) black unfolded as 5 waves down from the peak. Then we got 3 wave bounces in wave ((B)) and finally, we’re doing last leg down ((C)) black. Pull back looks incomplete at the moment. We expect to see 5 waves down n ((C)) leg , ideally toward 192.87-187.62 area. We don’t recommend selling the commodity and expect buyers to appear soon for further rally toward new highs.
You can learn more about Zig Zag Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
Microsoft Elliott Wave Analysis 07.01.2020
Eventually we got 5 waves down ((C)) as expected. However, the price missed to reach 192.87 area and pull back completed early at 193.57. The stock is now bullish against the 193.57 low and as far as that pivot holds, more upside should ideally follow. We don't recommend selling the stock in any proposed pull back and expect it to keep finding buyers in 3,7,11 swings.
Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. 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
Elliott Wave Forecast
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