Bearish Elliott Wave Structure in Microsoft (MSFT) Suggests Downside Risk
Microsoft (MSFT) continues to exhibit an incomplete bearish sequence from the July 31, 2025 high, suggesting further downside risk with potential targets as low as $267. The short‑term cycle from the June 2, 2026 high is unfolding as a zigzag Elliott Wave structure, reinforcing the corrective nature of the current price action. From the June 2 pivot, wave ((A)) concluded at $349.2. The subsequent rally in wave ((B)) remains in progress, internally subdividing as another zigzag pattern. Within this advance, wave 1 ended at $382.5, followed by a pullback in wave 2 that terminated at $359.9.
Wave 3 then pushed higher to $392.68, while wave 4 corrected to $381.22. The final leg, wave 5, extended to $395.57, thereby completing wave (A) at a higher degree. The ensuing pullback in wave (B) is proposed complete at $373.35. However, the stock must break above the prior wave (A) peak to eliminate the risk of a double correction. This condition highlights the importance of confirmation before assuming the corrective phase has ended.
Near term, as long as price action remains above $349.2, expectations favor an extension higher in wave (C). This move would complete wave ((B)) before the broader bearish sequence resumes. The overall structure continues to align with a downward bias, and traders should remain cautious of renewed weakness once the corrective rally concludes.
Microsoft (MSFT) 30-Minute Elliott Wave Chart
Microsoft (MSFT) Elliott Wave Chart
MSFT Elliott Wave Video:
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