Microsoft: Forecasting the rally after Elliott Wave flat

Hello fellow traders. In this technical blog we’re going to talk about Microsoft $MSFT stock and take a look at the charts presented in members area of the Elliottwave-Forecast. As our members know, Microsoft is showing incomplete bullish sequences , calling the further rally.  The stock is bullish against the 268.66 low. Consequently, we advised our members to avoid selling the Stock, favoring the long side.  Recently the pair has found buyers after completing Elliott Wave Expanded  Flat Pattern.In further text we’re going to explain the forecast and Elliott Wave Pattern.

Before we take a look at the real market example of Regular Flat, let’s explain the pattern in a few words. Elliott Wave Regular Flat is a 3 wave corrective pattern which could often be seen in the market nowadays. Inner subdivision is labeled as A,B,C , with inner 3,3,5 structure. Waves A and B have forms of corrective structures like zigzag, flat, double three or triple three. Third wave C is always 5 waves structure, either motive impulse or ending diagonal pattern.  Wave B is usually very deep, but ends below starting point of A. 

At the graphic below, we can see what Expanded Flat structure looks like.

Now, let’s take a look at real market example and see what that pattern looks like.

Microsoft 1 Hour Elliott Wave Analysis 08.19.2021

Microsoft is doing 4 red correction that is unfolding as Elliott Wave Flat pattern. We got 3 waves down in ((a)) leg ,then 3 waves bounce in ((b))  and now doing final ((c)) leg.  Wave 4 red pull back still looks incomplete at the moment. We expect to see another marginal push lower to complete 5 waves down in ((c)) leg.  The stock remains bullish against the 08.19 low.We don’t recommend selling it in any pull back and expect further rally to continue once 4 red correction ends.

Microsoft 1 Hour Elliott Wave Analysis 08.19.2021

The stock made another short term low as we expected. As far as the price stays above 287.25 low, we believe 4  red pull back is completed there as Elliott Wave Flat. Now we need to see further separation higher, and break above August 16th peak to confirm next leg up is in progress.

Microsoft 1 Hour Elliott Wave Analysis 08.19.2021

The stock held above 287.25 low and resume trading higher. Eventually we got break above previous 3 red peak – August 16th, confirming next leg higher is in progress. Microsoft now remains bullish against the 287.25 low in first degree. We expect it to keep finding buyers in 3,7,11 swings as far as the mentioned pivot holds.

Keep in mind that market is dynamic and presented view could have changed in the mean time.  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.