MICROSOFT to bleed more than half its value: wave 3 completionThis is a W1 chart of Microsoft.
The purpose of this post is to follow major companies whose share price affect the general financial market in order to anticipate the depression/recession that is to come.
This analysis is based on EWP in combination with fibonacci levels, and some reversal candle stick formation in the end.
After the correction of 2008-2009, MSFT began to develop wave 3 of a larger degree (Starting from Sep2019).
All wave count is on the chart and we now have a completed 5 wave structure to make wave 3.
This wave three structure took approximately 9 years to build, and it fits fibonacci levels perfectly!
Wave 2 is .5 ret of wave 1.
Wave 4 is .382 ret of wave 3.
Wave 3 is a 1.618 ext of wave 1-2.
Wave 5 is a 2.618 ext of wave 3-4.
Although fifth wave extension is uncommon in equity market, we cannot discard the possibility of this scenario with clear wave structures.
Wave 5 extension personality: it often retraces to the wave 2 region of the extended fifth wave (labelled with blue dotted lines.) ***This region coincides with .618 retracement of the entire wave 3 structure of one larger degree.
Candlestick:
Reversal pattern is in print with: a spinning top (2 weeks ago as I am writing this); a shooting star (last week as I am writing this, with its upper wick landing right on the 2.618 ext of wave 3-4!!).
And now, we have a hanging man in print (Have to wait for week to close).
In summary, all the stars are in line for MSFT to suffer a correction.
Using knowledge of wave personalities, it is extremely possible that MSFT may lose more than half of its current share value within the coming years.
