Microsoft: Strategies for Correction 🛠️

21 Feb

Microsoft (MSFT): MSFT

We remain steadfast in our primary scenario for Microsoft, which suggests a significant correction is underway. Thus far, there have been no deviations from this expectation.

Upon closer examination of the 2-hour chart, we observe that the subordinate Wave (B) precisely reached our targeted 127-138% retracement levels. We now anticipate a similar overshooting movement downwards, surpassing Wave (A), towards Wave (C), and subsequently the overarching Wave (a).

Unless we breach the $420 to $422 level, we do not foresee a continuation of the upward trend. A broader view on the two-day chart indicates that Wave 5 should ideally conclude at the 61.8% extension, implying a possible rise to $430. However, this is not certain. If we are experiencing a flat correction, the outcome could exceed this level depending on the origin of Wave A. Nonetheless, a subsequent downturn should be expected unless we surpass the corresponding 138% level.

The precise location of the 138% marker remains undetermined until we establish the position of Wave A, which we currently project to align with Wave 4, around the $160 to $175 level.

21 Feb

Catatan

Here is also the daily chart expectation for you.

11 Mar

Catatan

The expanding flat structure leading to Wave ((a)), which we expect around $364, specifically at Wave ((iv)), is exactly where we want it to be. We've completed the subordinate Wave (2) at the 61.8% level at $410. We believe there will be a significant decline in the coming weeks as we are now dealing with a five-wave downward structure within this flat structure. On the broader picture, we still expect a substantial downward move because, for Microsoft, we assume the completion of the first major cycle. This may go against the general consensus, but we find it necessary to adopt this stance unless we see a clear invalidation of this scenario, which would occur if we move above the $422 mark. Unless that happens, we continue to anticipate bearish movement.