The short-term Elliott Wave outlook for Microsoft (MSFT) paints a bullish picture, suggesting the stock has room to climb after a key low at $338 on April 7, 2025. This level marked the end of a corrective phase, known as wave (II), following a decline that began on July 5, 2024. That selloff unfolded in a three-wave pattern, a hallmark of a correction rather than a bearish trend. Notably, the final leg of this decline, starting from the December 12, 2024 high, didn’t reach a typical Fibonacci extension (1.618), reinforcing the idea that the market remains bullish on Microsoft.
Since hitting the $338 low, Microsoft has rallied in a five-swing pattern, a structure called a motive sequence, signaling potential for further gains. The rally’s first leg, wave (1), peaked at $373.65, followed by a dip to $346.75 in wave (2). The stock then surged to $393.23 in wave (3), with a brief pullback to $367.80 in wave (4). Now, Microsoft is likely nearing the end of wave (5), completing a larger wave ((1)).
Looking ahead, a wave ((2)) pullback is expected to correct the rally from April 7, but as long as the $338 low holds, any dips should find support in a three-, seven-, or eleven-swing pattern, setting the stage for more upside. This suggests short-term pauses but a continued upward trend for Microsoft, making it a stock to watch for bullish opportunities.
Since hitting the $338 low, Microsoft has rallied in a five-swing pattern, a structure called a motive sequence, signaling potential for further gains. The rally’s first leg, wave (1), peaked at $373.65, followed by a dip to $346.75 in wave (2). The stock then surged to $393.23 in wave (3), with a brief pullback to $367.80 in wave (4). Now, Microsoft is likely nearing the end of wave (5), completing a larger wave ((1)).
Looking ahead, a wave ((2)) pullback is expected to correct the rally from April 7, but as long as the $338 low holds, any dips should find support in a three-, seven-, or eleven-swing pattern, setting the stage for more upside. This suggests short-term pauses but a continued upward trend for Microsoft, making it a stock to watch for bullish opportunities.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.