Looking at its TA, MSFT clearly completed a 5 wave uptrend from May of 2023 all the way to July of 2024.
Originally, I was hoping MSFT would complete its correction move by 8/5, just like rest of Tech such as QQQ, NVDA, SP500 and start a new uptrend. However, the way its chart is developing starts to present a possiblity for MSFT to go a lot lower to complete a major ABC move.
This makes the earning this week very important, MSFT need to a: beat the earning estimate and b: provide a higher guidance. If MSFT is not able to do this, stock will turn south from here. That means we could see a small 5 wave (as shown in green 12345 on the chart) to complete the C wave.
Of course, if MSFT is able to beat estimate and guide higher, stock moves higher and this will invalidate the C wave. That will tell us 8/5 is indeed the completion of correction phase, and we should expect MSFT to go back to ATH.
So, earning this week very critical.
