Chart of the day

Where do we stand fundamentally?

MSFT published quarterly results yesterday which was in line or slightly lower then expectations and represent a peak in the company growth, because of that and cyber security company owned by MSFT outage the stock pulled back significantly.

MSFT is testing the 420 long-term uptrend support. Deeper pullback and an invalidation of immediate extension higher should happen upon a break below this level. For an extension higher we need to see a break above 435 again to test the peak of the wedge.

An invalidation level of a fifth wave long-term extension higher and a bullish cycle is 380. This extension higher could lead to 500 target in the medium-term to long-term upon a break above 435 again and a bounce from this 420 support.

_{Try a short trade entry with a stop loss above 430 first to target 350. Trade it with options as well.}