Here are my current thoughts on Microsoft:
The whole market has obviously been taking a beating and will likely continue to do so in the near future - However, everything happens in cycles / waves - and I believe we are approaching the time for a relief rally and I will explain why.
We can see that MSFT has been down-trending (like everything else) in what is known as a ZigZag Corrective Wave (Elliot Wave formation) which is made up of a 5-3-5 sub-wave structure (ABC).
The Fibonacci relationship with this Elliot Wave structure is as follows:
1. Wave B will retrace either (can be any of these): 50%, 61.8%, 76.4%, or 85.4% of Wave A.
- Wave B retraced between 50%-61.8%
2. Wave C targets (where it will likely end / reverse) are: 1:.618 extension, 1:1 extension, or 1:1.236 extension of Wave A.
- Wave C has already exceeded a 1:.618 extension, leaving the next two targets: 1) 1:1 extension = $136.30 and 2) A 1:1.236 extension = $127.17.
- We are currently on the 5th sub-wave within wave C - since sub-wave 3 of wave C reached a 1:1.618 extension of sub-wave 1 of wave C, it is also likely that sub-wave 5 of wave C will reach a 1:2.618 extension of sub-wave 1 of wave C which is $137.51 (a lot of sub-waves, I know).
Once we have officially bottomed / reversed, I would then target the following:
1. A .5 Fibonacci retracement of the entire ZigZag structure down
2. A .618-.65 (golden pocket) retracement of the entire ZigZag structure down
3. A .7 retracement of the entire ZigZag structure down (a personal preference of mine that has been found to be accurate)
So over the coming days, I will be watching and will likely begin to start laddering buys at these levels while paying close attention.
Comments, Questions, Agree/Disagree? Comment below!
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The whole market has obviously been taking a beating and will likely continue to do so in the near future - However, everything happens in cycles / waves - and I believe we are approaching the time for a relief rally and I will explain why.
We can see that MSFT has been down-trending (like everything else) in what is known as a ZigZag Corrective Wave (Elliot Wave formation) which is made up of a 5-3-5 sub-wave structure (ABC).
The Fibonacci relationship with this Elliot Wave structure is as follows:
1. Wave B will retrace either (can be any of these): 50%, 61.8%, 76.4%, or 85.4% of Wave A.
- Wave B retraced between 50%-61.8%
2. Wave C targets (where it will likely end / reverse) are: 1:.618 extension, 1:1 extension, or 1:1.236 extension of Wave A.
- Wave C has already exceeded a 1:.618 extension, leaving the next two targets: 1) 1:1 extension = $136.30 and 2) A 1:1.236 extension = $127.17.
- We are currently on the 5th sub-wave within wave C - since sub-wave 3 of wave C reached a 1:1.618 extension of sub-wave 1 of wave C, it is also likely that sub-wave 5 of wave C will reach a 1:2.618 extension of sub-wave 1 of wave C which is $137.51 (a lot of sub-waves, I know).
Once we have officially bottomed / reversed, I would then target the following:
1. A .5 Fibonacci retracement of the entire ZigZag structure down
2. A .618-.65 (golden pocket) retracement of the entire ZigZag structure down
3. A .7 retracement of the entire ZigZag structure down (a personal preference of mine that has been found to be accurate)
So over the coming days, I will be watching and will likely begin to start laddering buys at these levels while paying close attention.
Comments, Questions, Agree/Disagree? Comment below!
Like my content? If so, feel free to 'LIKE' and 'SUBSCRIBE' for more!
Thanks.
Comment:
Looks like it broke to the upside.
Comment:
First buy target of $137.51 was hit! Went to $137.50. Sniping targets, already up good from here at $147.25
Trade active:
First target was reached! Also notice the gap in the mid-upper $130's... It will fill once this is done.
Trade closed: target reached:
All targets hit! Thanks for playing
Hoping to see this begin to drop down into my by zones, will be watching closely as it moved up just before reaching my buy targets.