Rationale: Microsoft is showing signs of a potential reversal after hitting key support levels around $432-$434.
This level aligns with prior demand zones, and a recovery is anticipated based on Elliott Wave projections and Fibonacci retracements.
- Target 1 ($439): Represents the 0.382 Fibonacci retracement and aligns with interim resistance. - Target 2 ($445): Aligns with the 0.618 and 0.65 Fibonacci retracement levels, completing Wave C.
Risk Management: Position size is adjusted for a 1% account risk.
Outlook: This trade leans on technical patterns and tight risk-reward dynamics. Microsoft continues to be fundamentally strong, with its cloud and AI initiatives fueling long-term growth.