Hello everyone! In today’s article, we’ll examine the recent performance of Microsoft Corp. ($MSFT) through the lens of Elliott Wave Theory. We’ll review how the decline from the July 05, 2024, high unfolded as a big 3-swing correction and discuss our forecast for the next move. Let’s dive into the structure and expectations for this stock.
$MSFT Daily Elliott Wave Chart 4.06.2025:
In the Daily Elliott Wave count from April 06, 2025, we see that $MSFT completed a 5-wave impulsive cycle at blue ((I)). As expected, this initial wave prompted a pullback. We anticipated this pullback to unfold in 3 swings first, likely finding buyers in the equal legs area between $355.81 and $293.74.
This setup aligns with a typical Elliott Wave correction pattern (ABC), in which the market pauses briefly before resuming its primary trend.
$MSFT Daily Elliott Wave Chart 4.20.2025:
The most recent update, from April 20, 2025, shows that the stock bounced as predicted. After the decline from the July peak, the stock is now finding support in the equal legs area. Currently, it is pulling back in wave ((2)) to correct the 5-wave impulse of wave ((1)). After that, the market is expected to continue higher in wave ((3)) of a renewed bullish cycle.
Conclusion
In conclusion, our Elliott Wave analysis of Microsoft Corp. ($MSFT) suggests that it remains supported against April 2025 lows. As a result, traders should buy the dips and monitor the $408 –$441 zone as the next potential target. In the meantime, keep an eye out for any corrective pullbacks that may offer entry opportunities. By applying Elliott Wave Theory, traders can better anticipate the structure of upcoming moves and enhance risk management in volatile markets.