$MSFT May Have Completed Its Countertrend Bounce, and Here Is Where It Should Go Next

Microsoft is piercing its downtrend line, but as you can see, it has done this before (and it was a bull trap). Having lost its long-term uptrend casts serious doubt on the decline being very short-lived.

More likely, that loss of long-term trend indicates a much longer-term bear market is probably in store for this stock.

A large 3-wave pattern looks incomplete here, as we should expect at least equal legs within the primary (pink) A-B-C swing. Getting there requires a move to 181 (at least):

MSFT

Zooming in, the intermediate (orange) “B” looks to be an expanded flat correction, a 3-3-5 countertrend rally (the A-B-C in green):

MSFT

There is an acceptable fib relationship where we are at now, so it may be complete (though it remains possible for it to reach for the 1.618 extension as well if it needs to).


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