MSFT at Critical Support -Bounce or Breakdown?### **📊 Full Technical Analysis – Microsoft (MSFT) – 1D Chart**
🚀 **Current Price:** **$415.24** (**-6.12% drop** today)
📉 **Massive sell-off after rejection at key resistance**
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### **🔍 Key Technical Observations**
#### **1️⃣ Price Structure & Market Trend**
- **Previous Highs & Lows:**
- **Major Resistance at ~$460 (HH Zone - Area of Interest)**
- **Local Support at $390 - $400** (historical demand zone)
- **Current Fib Retracement Holding at 0.786 (~$414)**
- **Change of Character (CHoCH) Signals**:
- **Multiple bearish CHoCH formations** = Weak market structure
- Last bullish break of structure (BoS) led to a lower high → Potential **trend reversal confirmed**
#### **2️⃣ Fibonacci Levels Indicating Reversal Zones**
- **0.236 Fib (~$440)** → **Rejected hard**
- **0.382 Fib (~$432)** → **Intermediate resistance**
- **0.5 Fib (~$422 - Now lost)** → Could act as new resistance
- **0.618 Fib (~$414 - 415)** → **Testing now – critical zone!**
- **0.786 Fib (~$404 - Last defense for bulls)**
🔍 **If $414-$415 holds, we may see a bounce; if it fails, expect a drop to $404 or even $390.**
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### **3️⃣ Volume & Delta Volume Shift**
📊 **Bearish Delta Volume (-200M)** – Heavy sell-side pressure
🔻 **37.96M Shares Sold** – Institutional-level sell-off
🔍 **Price dropped into a demand zone with high volume. This means either a strong bounce or a deeper breakdown.**
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### **4️⃣ Moving Averages & Momentum**
✅ **Price tested 200-day EMA (potential support)**
⚠ **If it loses 200-EMA, next target is $390**
📉 **Momentum is weakening** – RSI likely below 50
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### **🚀 Plan of Action: How to Trade This Setup?**
🔹 **Scenario 1: Bullish Reversal (Bounce from $414-$415 Support Zone)**
📌 **Entry:** **Go Long** above **$416-$418** if price reclaims support
🎯 **Target 1:** $432 (0.382 Fib)
🎯 **Target 2:** $440 (0.236 Fib)
🎯 **Target 3:** $460 (Major Resistance)
🛑 **Stop Loss:** **Below $410** to protect against a fakeout
📢 **Best Play? Wait for bullish confirmation (green candle) before entering a long!**
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🔻 **Scenario 2: Breakdown Below $414 – Short Setup**
📌 **Entry:** If price breaks & closes below **$414**, **go short**
🎯 **Target 1:** **$404 (0.786 Fib Level)**
🎯 **Target 2:** **$390 (Major Support Zone)**
🛑 **Stop Loss:** Above **$420** (If price reclaims Fib levels, shorts are invalidated)
📢 **High Probability Short if volume continues to favor sellers!**
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### **🔥 Options Trade Setup – High Probability Play**
**🛑 Bearish Play (If MSFT Breaks $414)**
📉 **BUY 1x MSFT $410 Put & SELL 1x MSFT $400 Put (Put Debit Spread)**
⏳ Expiration: Feb 16, 2025
🎯 Profit if MSFT drops toward $400
💰 **Risk/Reward: 3:1 (Low cost, high reward play)**
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### **🏆 Final Verdict: High-Probability Trading Plan**
📌 **Key Level to Watch:** **$414-$415 Fib support**
📌 **Bullish above $418** → Buy dips for $432+
📌 **Bearish below $414** → Short for $404-$390
🚀 **What’s your take? Bullish bounce or further breakdown? Let’s trade smart!** 🔥📉
