Chart of the day

MSFT is testing a new high of 385, which is probably the peak of a long-term and short-term Elliott Wave cycle the fifth wave, and the long-term uptrend channel's upside resistance.

A rejection here and a break below 365 will confirm that the fifth wave is probably in place and has been finished and we could see a pullback lower to a key downside resistance of 315. A confirmed break below the 315 level will open a new leg lower and confirm that the long-term and short-term five waves are finished. A break above 385 will lead to a higher extension in the long-term fifth wave and invalidate the reversal pullback.

Short-term short trades could be opened here with a stop loss above 385. Long trades should be opened only upon a confirmed break above 386. I am inclined to see a deeper pullback into 315, which can be traded with the options as well.