Microsoft Corp.: wave analysis 24 May 2018, 09:46

Microsoft Corp.: wave analysis

24 May 2018, 09:46

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	98.67
Take Profit	102.50, 104.50
Stop Loss	95.72
Key Levels	90.23, 95.72, 102.50, 104.50

Alternative scenario
Recommendation	SELL STOP
Entry Point	95.65
Take Profit	90.23
Stop Loss	97.45
Key Levels	90.23, 95.72, 102.50, 104.50

The trend is upward.
On the 4-hour chart, the upward momentum is forming within the third wave (3) of the higher level. Locally the fifth wave of the lower level v of 5 of (3) is forming, within which the third wave (iii) of v is developing. If the assumption is correct, the price will grow to the levels of 102.50–104.50. The level of 95.72 is critical and stop-loss for this scenario.


Main scenario
Long positions will become relevant during the correction, above the level of 95.72 with the targets at 102.50–104.50. Implementation period: 5–7 days.
Alternative scenario
The breakdown and the consolidation of the price below the level of 95.72 will let the price go down to the level of 90.23.