Microsoft Is Finishing Wave 4 Correction

Microsoft is in a wave 4 correction, and once it's fully completed, it can extend the rally within wave 5 from a technical point of view and according to Elliott wave theory.


Microsoft is a global technology company founded by Bill Gates and Paul Allen in 1975. It’s best known for its Windows operating system, Microsoft Office suite, and cloud platform Azure. Over the years, Microsoft has expanded into gaming (with Xbox), professional networking (LinkedIn), and AI (through partnerships like OpenAI). Today, it’s one of the world’s most valuable and influential companies, shaping software, hardware, and cloud computing industries.

Microsoft reported earnings last Wednesday after the close, with the price turning lower after reaching new highs. The structure still appears to be a wave four in progress — a flat correction where the current drop likely represents wave C. Wave C often stabilizes near wave A levels, suggesting support around 492 and 468 (the former 2024 high). Holding this zone could set up the next rebound into the final higher-degree wave five.

Highlights:
Trend: Corrective phase, wave C of flat in progress
Potential: Rebound toward new highs once support holds
Support: 492 / 468
Invalidation: Below 394
Note: Watch for stabilization at support before potential wave five continuation