Microsoft: Target Zone Hit!

Microsoft has reached our green Long Target Zone between $451.84 and $477.87 as anticipated. In the meantime, the stock has successfully completed the magenta wave (4) and has since broken out of the Target Zone to the upside. We now expect further gains as wave (5) unfolds, targeting a move above the resistance at $562.17, where the larger blue wave (I) is expected to conclude. After that, we anticipate a pronounced correction phase. However, there remains a 38% chance that MSFT could break down through the Target Zone and fall below the support at $392.97. In this case, we would reclassify the last significant high at $562.17 as the top of the beige wave alt.III and prepare for a new low in wave alt.IV.