Chart of the day

MSFT is testing the upside resistance of 420 and if we get a break above this level we could see an extension higher to 450. A rejection here and a break below 390 will lead to a downside extension to a key level of upside support of 350.

Only in the case of a clear confirmed break above 420, can we see an immediate upside extension in the fifth Elliott wave higher. A break below 390 will lead to a key upside support test of 347 and that will confirm that the long five upside long-term waves cycle has been finished.

_{Long trades could be opened here with a stop loss below 400 only upon a confirmed break above 420. Short trades are more advisable here as they have a possible better risk to reward and with a stop loss above 420. This can be traded with options as well.}

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