Microsoft (MSFT) Testing Critical Support! 📊 Technical Analysis (TA):
1. Trend & Structure:
* MSFT has been in a strong downtrend, marked by multiple Break of Structure (BOS) signals.
* Recent Change of Character (ChoCH) suggests a potential bottoming attempt.
* Key Resistance: ~400-415 (supply zone)
* Support Zone: ~385-388 (current demand area)
2. Indicators:
* MACD & Stochastics show early signs of bullish momentum but remain weak.
* Volume spikes indicate selling pressure is still dominant.
🔹 GEX & Options Flow:
1. Call Walls (Resistance) 🚧
* 415-420: Strong resistance, may cap any rally.
* 430: 3rd Call Wall, unlikely to be reached in the short term.
2. Put Walls (Support) 🛑
* 385: Immediate support where puts are concentrated.
* 380: Highest negative NETGEX, meaning if MSFT breaks below, a sharp drop to 360-370 is possible.
3. IV Rank & Skew:
* IVR 53.9, indicating mid-range volatility.
* Low put activity (6.4%), suggesting mixed positioning.
* Implied move: ±2.6%, indicating potential large swings.
📌 Trading Plan & Suggestions:
* Bullish Scenario:
* If MSFT holds 388-390, we could see a bounce toward 400-410.
* Calls or spreads with April expiry could benefit from a rebound.
* Bearish Scenario:
* If MSFT breaks 385, expect a drop toward 380, where put positioning increases.
* Ideal Put Play: Buy March-April 390P or 380P targeting 370-380.
⚠️ Key Warning: If MSFT holds 385-388, a relief rally could squeeze shorts.
🔥 Conclusion: MSFT at Decision Point – Bounce or Breakdown?
Microsoft is testing critical support, with options flow suggesting downside risk. The next sessions will determine if bulls defend or bears extend losses. Watch for price action near 385-390 before making a move. 🚀📉
🚨 Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
