Microsoft Corp.: wave analysis

The price may fall.

On the daily chart, the third wave of the higher level 3 develops, within which the wave (5) of 3 formed. Now, a downward correction has started to develop as the fourth wave 4, within which the wave (А) of 4 is forming. If the assumption is correct, the price will fall to the levels of 182.40–170.66. In this scenario, critical stop loss level is 232.92.

Main scenario

Short positions will become relevant during the correction, below the level of 232.92 with the targets at 182.40–170.66. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 232.92 will let the price grow to the levels of 250.00–260.00.