Good morning! Let's observe MICROSOFT. S
1. One of the headliners of the 99-00 dotcom boom, Microsoft, was in a corrective movement (re-accumulation) from 2000 to 2012. Pretty long time, isn't it? Now it is clear where such an "eternal" parabola comes from.
2. In 2012, we saw breakout from the re-accumulation range and backing up actions (tests of the former resistance line)
3. A slow, calm growth began in the channel, where the resistance and support lines worked perfectly (uplsloping mark-up chanel)
4. We saw an exit from it in 2017, a couple of BU actions in 2018.
5. Next, there was growth in the channel (momentum increased). The support and resistance lines worked perfectly again.
6. October 2021. We made HL and began to grow (a new swing of buyers). At that time we were waiting for the breakout from the channel (result of the HL). It seemed like we were leaving chanel and this was it, lets just count pnf chart but we accidentally got declined. We were quickly returned from the overbought coindition to the channel, and for the first time in a very long time, we made LL. The trend is fading... We are expecting rotation.
7. The most interesting thing, what's next? Recently we have seen a good demand came in, but so far we cannot hold the support line of this channel.
There are several outcomes:
A.First scenario We will try to return in a chanel but bulls rally will be so weak that we ll have another decline at 300$ and then we can easily go to test zone of $ 230-240 per share.
B.The second is that demand is working (good demand tales, local shortening of thrust, the Fed raises the rate only by 0.25, not 0.5) and we ll see a new rally of bulls, it can reach Ath (ST), make UT action , or finish at the 0.5 - 0.618 zone (LH) but in all three outcomes we will not be thinking: "yeah, thats enough cause to see breakout and expanding of the momentum, that is a true phase D" unless some tests (hl), breakout and bu action.
C. The third is true bo ath level at great momentum , retest of the resistance line (bu) and upsloping consolidation at this level.
8. Then, from the 230-240 zone, it is obvious to expect a new bulls rally that will try to test previous demand line of the channel (second point of excitement). Here a lot of people will believe that the MSFT will reach 500$ and this is a new growth cycle, but we will not hurry, we will observe. It is very realistic to reach the minimum of March 2020, capture liquidity, or even test that channel (from 2012 to 2017).
We expect good POE at these levels.
1. One of the headliners of the 99-00 dotcom boom, Microsoft, was in a corrective movement (re-accumulation) from 2000 to 2012. Pretty long time, isn't it? Now it is clear where such an "eternal" parabola comes from.
2. In 2012, we saw breakout from the re-accumulation range and backing up actions (tests of the former resistance line)
3. A slow, calm growth began in the channel, where the resistance and support lines worked perfectly (uplsloping mark-up chanel)
4. We saw an exit from it in 2017, a couple of BU actions in 2018.
5. Next, there was growth in the channel (momentum increased). The support and resistance lines worked perfectly again.
6. October 2021. We made HL and began to grow (a new swing of buyers). At that time we were waiting for the breakout from the channel (result of the HL). It seemed like we were leaving chanel and this was it, lets just count pnf chart but we accidentally got declined. We were quickly returned from the overbought coindition to the channel, and for the first time in a very long time, we made LL. The trend is fading... We are expecting rotation.
7. The most interesting thing, what's next? Recently we have seen a good demand came in, but so far we cannot hold the support line of this channel.
There are several outcomes:
A.First scenario We will try to return in a chanel but bulls rally will be so weak that we ll have another decline at 300$ and then we can easily go to test zone of $ 230-240 per share.
B.The second is that demand is working (good demand tales, local shortening of thrust, the Fed raises the rate only by 0.25, not 0.5) and we ll see a new rally of bulls, it can reach Ath (ST), make UT action , or finish at the 0.5 - 0.618 zone (LH) but in all three outcomes we will not be thinking: "yeah, thats enough cause to see breakout and expanding of the momentum, that is a true phase D" unless some tests (hl), breakout and bu action.
C. The third is true bo ath level at great momentum , retest of the resistance line (bu) and upsloping consolidation at this level.
8. Then, from the 230-240 zone, it is obvious to expect a new bulls rally that will try to test previous demand line of the channel (second point of excitement). Here a lot of people will believe that the MSFT will reach 500$ and this is a new growth cycle, but we will not hurry, we will observe. It is very realistic to reach the minimum of March 2020, capture liquidity, or even test that channel (from 2012 to 2017).
We expect good POE at these levels.