MSFT, Microsoft

msft lmsft s

Both charts are essentially the same. I like using two in this case as one sort of confirms the other. They can , as always, be enlarged by clicking on them.

Clearly there is a triangle in here somewhere. On rare occasions these structures that normally have 5 legs, a,b,c,d and e, add another 4 legs to make it an a-b-c-d-e-f-h-i.  This one is rather accurate. As triangles only exist in 4th or b-wave positions it has to be one or the other. In this case, being totally out of proportion with a wave 2 if one can even find it, chances are that this is a b-wave in an a-b-c , that is making a large B-wave from the lows. If c should equal a we would get to about $42 which would exceed the double-top level of $37 which normally does not happen. If , on the other hand, c climbs to 0.618x a it would target roughly $34, which also just happens to coincide with the size of the “mouth” of this triangle.

We have no idea what the right number is but the max is about $37, reasonable is $34 and in the end the stock almost invariable drops back to at least the lowest point of the triangle, about $23. So in reality the choice is  between $3 to the upside and $11 to the downside. An easy choice.