Microsoft Elliott Wave: Calling The Decline After Flat

Hello Fellow Traders. In this technical article we’re going to take a look at the Elliott Wave charts charts of Microsoft (MSFT) stock published in members area of the website. As our members know $MSFT has recently given us Irregular flat pattern against the 294.26 peak.  Once the stock completed flat correction, it made decline toward new lows as expected. Now $MSFT is showing lower low sequences in the cycle from the 294.26 high , which are calling for a further weakness.

Before we take a look at the real market example of Expanded Flat, let’s explain the pattern in a few words.


Elliott Wave Expanded Flat Theory

Elliott Wave Flat is a 3 wave corrective pattern which could often be seen in the market nowadays. Inner subdivision is labeled as A,B,C , with inner 3,3,5 structure. Waves A and B have forms of corrective structures like zigzag, flat, double three or triple three. Third wave C is always 5 waves structure, either motive impulse or ending diagonal pattern. It’s important to notice that in Irregular Flat Pattern wave B completes below the starting point of wave A.  Wave C ends above the ending point of wave A . Wave C of  Flat completes usually between 1.00 to 1.236 Fibonacci extension of A related to B, but sometimes it could go up to 1.618 fibs ext.

At the graphic below, we can see what Expanded Flat structure looks like

(Click on image to enlarge)


Now, let’s take a look what Elliott Wave Flat Pattern looks like in the real market


Microsoft $MSFT 4h Hour Elliott Wave Analysis 09.11.2022.

The stock has made 5 waves down from the 294.26 peak and now correcting that cycle. Current view suggests that $MSFT is giving us recovery against the 294.26 peak that is unfolding as Irregular Flat Pattern.  When we downgrade charts to lower time frames , we can see waves inner subdivisions of A and B red are having corrective sequences.  Wave B  has broken the starting point of  A  while C  has broken ending point of  A which is characteristic of Irregular flat.  Wave C red leg should complete as 5 waves soon. We expect (B) blue recovery to complete around 264.2-267.8 area as Flat structure.

You can learn more about Elliott Wave FLAT  and other Patterns at our Free Elliott Wave Educational Web Page

(Click on image to enlarge)




Microsoft $MSFT 4h Hour Elliott Wave Analysis 09.18.2022

Microsoft stock ended (B) blue recovery at 267.39 high and made turn lower as we expected. Eventually the price has broken previous low (A) blue which was important confirmation that bears are taking control. Further weakness is expected in the stock as far as pivot at (B) blue peak( 267.39) holds. Short term cycle from that high completed as 5 waves- leading diagonal. It is labeled as 1 red which is first leg of wave (C) blue. We expect bounce in 3 waves in 2 red, before further drop takes place.

Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.

(Click on image to enlarge)



Elliott Wave Forecast

We cover 78 instruments in total, but not every chart is trading recommendation. We present Official Trading Recommendations in Live Trading Room.  If not a member yet,  Sign Up for 14 days Trial now and get access to new trading opportunities. Through time we have developed a very respectable trading strategy which defines Entry, Stop Loss and Take Profit levels with high accuracy.

Please keep in mind that we don’t make the market and our forecasts don’t have 100% accuracy. However, we do have a system which allows us to get out Risk Free + cash partial profit from the trade, even if primary analysis gets wrong. Join us now and start learning from market experts.

Welcome to Elliott Wave Forecast !

More By This Author:

GBPUSD: Forecasting The Decline After Irregular Flat
Apple Looking For Further Downside
Zoom Entering Into The Bigger Extreme Area

Disclaimer: Futures, options, and over the counter foreign exchange products may involve substantial risk and may not be suitable for all investors. Leverage can work against you as well as for ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.