The current market situation turned out to be much more serious than it seemed at first glance.
The breakdown of the support levels of the S & P500 and NASDAQ indices suggests that the correction that is currently underway is a correction of a higher fractal level.
MSFT in these conditions demonstrates amazing resilience.
It is rather difficult to give unambiguous forecasts regarding the relative price, since there are a lot of options for the development of events. Therefore, today we will talk not so much about Elliot wave analysis, but about important levels, the achievement of which will help you understand what will happen next.
At the moment, the figure resembles a divergent triangle and this will be uniquely so, if MSFT reaches level 113. Above 115 is a strong buy signal.
It is quite possible that the current figure A-B-C-D-E is a flat correction of wave B (something like AAPL drew in October) and a breakdown of level 97 - there will be wave C and a strong sell signal.
We have also indicated the level of support 87.5 - This is, in our opinion, the beginning of the first wave of cycles. If the price falls below this level - the current correction will be a higher level correction and the probability of further reduction will be extremely high.