MSFT – Microsoft (Last:416.67)

Microsoft still has room to fall, judging by the way sellers crushed the midpoint Hidden Pivot support at 423.21 on Friday. The pattern is gnarly enough to qualify as experimental. Even so, it is a well-established rule of the Hidden Pivot Method that price action at p is definitive regardless of the quality of the pattern. Since there is no ambiguity about the decisiveness of p’s penetration, we can reliably conclude that d=380.10 is a very good bet to be reached. Nevertheless, if the stock were to reverse and touch the green line, the gyrations within the pattern’s b-c leg make a ‘mechanical’ short there less appealing than we should prefer.

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