Take profits on MSFT longs
This multi-timeframe look at MSFT makes a case for taking profits on long positions as the stock grinds higher in Wave 5. Starting with the daily chart on the left, we can see a clear five-wave impulse dating back to 2015. Price was neatly contained within the base channel until Wave 3 pushed through topside resistance and then fell back to the channel mid-point in Wave 4. Drilling down to a 90m chart on the right, we can see that Wave 4 was a complex correction that alternated in form from Wave 2. With price now above the Wave 3 high on an impulsive rally, it seems clear that MSFT is in the midst of Wave 5. Picking tops is unnecessarily difficult, so I'm not initiating a position yet. However, if I were long I would be scaling out of the position at this point.
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