Microsoft (MSFT) reached an all-time high of $555.45 on 31 July 2025. The price then fell to $356.07 on 28 March 2026, with this move labelled wave (II).<\/p>\n
After 28 March 2026, the stock moved higher in wave (III). It still needs to rise above $555.45 to reduce the risk of a double correction.<\/p>\n
From the $356.07 low, wave (1) ended at $386.29 and wave (2) fell to $367.05. Wave (3) then rose to $433.94 on the 30-minute chart.<\/p>\n
Wave (4) dropped to $404.61. Wave (5) reached $445.24, completing wave ((1)).<\/p>\n
A pullback in wave ((2)) is now under way to correct the rise from 28 March 2026. This correction is described as likely to form either three or seven swings before the uptrend resumes.<\/p>\n
A pivot level is set at $367.23. While price stays above $367.23, dips are described as expected to occur in three or seven swings.<\/p>\n
Following the strong rally from the March 28th low, we are now in a corrective pullback that should be viewed as a buying opportunity. This bullish outlook is supported by recent fundamentals, as Microsoft reported Q1 2026 earnings on April 25th, beating revenue estimates by 4% with a 28% year-over-year growth in its Azure cloud unit. The current dip allows for entry ahead of what is expected to be the next major wave higher.<\/p>\n
For traders anticipating the stock will hold above its recent lows, selling out-of-the-money put credit spreads is an effective strategy. One could consider selling puts with strike prices below the recent $404.61 low, for instance, targeting the $390 or $380 levels for May or June 2026 expirations. This approach profits from time decay and the stock staying above these key areas, aligning with the view that dips will be shallow.<\/p>\n
To more directly capture the expected next leg up toward the all-time high, purchasing bull call spreads is a defined-risk alternative. A trader might buy a call option with a strike near $420 and sell one with a strike around $450 to finance the position. We saw a similar setup in the market recovery of 2023, where leading tech stocks paused briefly before resuming powerful uptrends.<\/p>\n
This pattern is reminiscent of past market environments where a strong initial thrust off a major bottom is followed by a healthy consolidation before the next surge. Historical data shows that since 2020, corrections of 15-20% in major tech stocks have often been followed by multi-quarter rallies once the initial recovery wave is confirmed. This strengthens the case for positioning for further upside during this current weakness.<\/p>\n
The most critical level to watch is the pivot at $367.23. A break below this support would negate the immediate bullish impulse structure and signal that a deeper, more complex correction is unfolding. Therefore, all bullish derivative positions should incorporate a plan to exit or hedge if that price level is breached.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Microsoft hit $555.45, dropped to $356.07, then began wave (III); pullback underway above $367.23 pivot.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-46319","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/46319","targetHints":{"allow":["GET","POST","PUT","PATCH","DELETE"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=46319"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/46319\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=46319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=46319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=46319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}