The easy blast through p=449.09, the Midpoint Hidden pivot, leaves little doubt as to whether the stock will reach the 548.98 target shown. The bad news for bulls is that it would fall just a tad short of the record 555.45 achieved last August, implying this is ‘just’ a bear rally, albeit a very impressive one. It would be psychologically impressive as well, since permabulls would be licking their chops, and bears will already have thrown in the towel. What a splendid trap that would be! If a relapse to the green line occurs, it would effectively signal a bear market. And although we should be prepared to bottom-fish down there anyway, it should be with expectations of enjoying only a one-level bounce to the 559.09 ‘p’ midpoint. We should also consider a ‘mechanical’ buy at the red line (p=449.09) if the opportunity develops.
MSFT – Microsoft (Last:495.40)