Targeting 260s following reportMSFT is due for a backup/retest within a larger Accumulation structure; however, near-term there has been minor distribution which suggests this pullback could be deep enough to make some money on the puts side.
Point target is 266, which will be a critical level:
- if it bounces in the 266-270 range, it can continue higher to upper 290s (it would be pulled back down from there toward equilibrium point of 266 by mid-May)
- if it falls below 266 then it will make explosive move to next target of 247, where it will likely bounce and move up toward 266 equilibrium point by mid-May
- Lowest I can see it going is 233, where it will find support
Momentum is to the downside near-term, after breaking below 281 (the breakdown level from recent minor distribution). As long as it stays below that going into the report today (4/25) then we will see the downside follow through to at least 260s.
Expect price action to be something in between the solid red trajectory and the dashed black trajectory.
