This multi-timeframe look at MSFT makes a case for taking profits on long positions as the stock grinds higher in Wave 5. Starting with the daily chart on the left, we can see a clear five-wave impulse dating back to 2015. Price was neatly contained within the base channel until Wave 3 pushed through topside resistance and then fell back to the channel mid-point in Wave 4. Drilling down to a 90m chart on the right, we can see that Wave 4 was a complex correction that alternated in form from Wave 2. With price now above the Wave 3 high on an impulsive rally, it seems clear that MSFT is in the midst of Wave 5. Picking tops is unnecessarily difficult, so I'm not initiating a position yet. However, if I were long I would be scaling out of the position at this point.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.