Bearish Elliott Wave Structure in Microsoft (MSFT) suggests downside risk [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Microsoft (MSFT) continues to exhibit an incomplete bearish sequence from the July 31, 2025 high, suggesting further downside risk with potential targets as low as $267. The short‑term cycle from the June 2, 2026 high is unfolding as a zigzag Elliott Wave structure, reinforcing the corrective nature of the current price action. From the June 2 pivot, wave ((A)) concluded at $349.2. The subsequent rally in wave ((B)) remains in progress, internally subdividing as another zigzag pattern. Within this advance, wave 1 ended at $382.5, followed by a pullback in wave 2 that terminated at $359.9.

Wave 3 then pushed higher to $392.68, while wave 4 corrected to $381.22. The final leg, wave 5, extended to $395.57, thereby completing wave (A) at a higher degree. The ensuing pullback in wave (B) is proposed complete at $373.35. However, the stock must break above the prior wave (A) peak to eliminate the risk of a double correction. This condition highlights the importance of confirmation before assuming the corrective phase has ended.

Microsoft (MSFT) 30-minute Elliott Wave chart

Near term, as long as price action remains above $349.2, expectations favor an extension higher in wave (C). This move would complete wave ((B)) before the broader bearish sequence resumes. The overall structure continues to align with a downward bias, and traders should remain cautious of renewed weakness once the corrective rally concludes.

MSFT Elliott Wave video

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Elliott Wave Forecast Team

ElliottWave-Forecast.com

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