Classic 5 wave Elliott pattern which has a high probability of making you money if you are patient and not greedy. Greed is inversely proportional to how much money you make in the market.
If you look at this chart on a weekly or monthly time scale and look at the RSI, there is bearish divergence on both timescales which warns of a MAJOR reversal ahead to the down side. A longer term trader / investor could add a short position in MSFT to their portfolio. (This is not financial advice, you are responsible for your own losses).
Must be careful here to cut the loss if price breaks up higher than the all time high.
Looking at RSI and MACD alone shows how this has a very high chance to drop sharply over the next few days. The ending 5th wave diagonal precedes sharp reversals.
This set up has a very good RRR (risk to reward ratio) and should very likely yield a profit. As this is the 5th wave, the last wave of buying is occurring and once it finishes, there will be no more people to hold the market up. Panic selling will occur which will cause the price to retrace down to usually the 38.2% retracement of all 5 waves, or the end of the 4th wave.
Here wave 3 extended and was nearly 1.618*the length of wave 1, therefore wave 5 should be a maximum of 100% of the length of wave 1. Wave 5 is currently slightly over 61.8% of the length of wave 1. Here wave 5 is clearly an ending 5th wave diagonal and thus a sharp reversal should follow very soon.
I can count 5 waves in the 5th wave which means it's very nearly time for Apple to reverse and retrace all 5 waves. Here wave 3 extended, so wave 5 will tend to be equal to or related by fibonacci to wave 1. The stop loss is in place if the 5th wave extends, however this is very rare, but the stop must be placed just in case. Any questions please let me know.
Shorting the end of 5 waves is a great way to put your capital to good use. It has such a high success rate to make profit. These stocks sometimes take over a week to hit targets and others may hit targets within a day. Any questions, please feel free to reach out.