MSFT (Microsoft) experienced a very strong decline from its September 2025 highs, but the stock is now sharply and impulsively bouncing from the important $350 area. This could indicate that an irregular ABC flat correction within a higher-degree wave (IV) has been completed and that a new higher-degree wave (V) is now underway. On the daily chart, we can see a nice and clean five-wave impulse from the $347 lows, confirming strong bullish momentum. However, since the stock may now be trading in wave 5 of this lower-degree impulse, traders should be aware of the potential for a corrective setback before the broader bullish trend continues.
The first important support area is seen around the open gap between $464 and $434, while a deeper support zone comes in around $400–$390.
Highlights:
• Microsoft may have completed a higher-degree wave (IV) irregular flat correction.
• The five-wave impulse from the $347 lows suggests that bulls are back in control.
• A pullback toward the open gap between $464 and $434 could provide an attractive support area.
• A rebound from that area could lead to a bullish continuation within higher-degree wave (V), potentially toward new all-time highs.
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