Published on Monday, 01 August 2016 09:02
Written by Elliott Wave Surfer
Microsoft - Rally to the 64.05 - 64.75 area before a 38% correction to 39.72
This is not a stock, I normally track, but the rally of the March 2009 low at 14.87 is a picture perfect five wave rally (not yet complete, thus).
Microsoft has seen a nice rally of the March 2009 low at 14.87. The rally is clearly in five waves and after a five wave rally a larger correction of the entire five wave rally should be expected.
Wave 5 is not yet complete and should cover more upside towards the 64.05 - 64.75 area before topping out and turn lower as the five wave rally is being corrected.
Why am I looking for a top in the 64.05 - 64.75 area you might ask? Well at 64.05 wave 5 will be 38.2% the length of the entire rally from the low of wave 1 at 14.87 to the top of wave 3 at 56.85 added to the bottom of wave 4 at 48.04.
However, at 64.75 wave 5 will be equal in length to wave 1, which is a very common target for wave 5. So with a target-cluster in this area, that is what I will look for before wave 5 is complete and a 38% correction is expected.