Microsoft ($MSFT) has risen 27% since April, starting from the Blue Box area. This point marked the end of a downward trend, indicating a potential short-term price drop. Right now, Microsoft is in a correction phase, following an Elliott Wave Zig Zag Pattern. This hints that we may see some weakness before another buying opportunity arises. The target price is around 355.33, where we expect a bounce in three waves. This level can help with risk management and profit-taking. Investors who bought in at the Blue Box area have secured their positions after the price climbed from 338 to the 450 range. Our goal is to move stop losses to breakeven and take partial profits as long as the price stays above 338, which suggests more potential for gains. We provide specific buy and sell setups, with clear stamps and zones to help guide trading decisions. Our risk disclosures highlight the challenges involved in trading, reminding everyone to be informed and cautious. Trading advice is available to paid subscribers, and strict copyright protections are in place against unauthorized sharing. Microsoft’s recent 27% rise, which followed accumulation near an exhaustion zone, has yielded significant profits. This strengthens the case for entering high-probability areas that align with pattern completions. The bounce from 338 to around 450 supports our initial bullish outlook. However, we now need to focus on managing risks as short-term weakness appears. The current pullback shows characteristics of a classic Elliott Wave Zig Zag correction, suggesting that price action may remain low in the near future. The expected three-wave structure usually provides temporary relief in broader trends, indicating a potential retracement to 355.33. This level is where buyers may return, though likely not with the same energy we saw in April. Since long positions are now risk-free after strong upward movement, it makes sense to consider reducing partial positions or adjusting stop losses to lock in profits while allowing price some room to move. Protecting the 338 area is crucial for maintaining a bullish view going forward. If the price convincingly breaks below this level, the correction may deepen, making flexibility more important than sticking rigidly to prior trading plans. Short-term traders should watch for fresh setups as prices drop towards our identified zone. We anticipate that the upcoming bounce will create opportunities for tight management—emphasizing quick trades and partial re-engagements rather than aggressive accumulation. In these situations, knowing your exit strategy is just as critical as the entry point. This corrective move does not signal a total collapse, but it shouldn’t be mistaken for a strong bottom either. Corrections like this often unfold in overlapping waves that slow momentum and invite early re-entries. We will wait for clearer signals from price action near expected retracement levels instead of acting prematurely. Every move and wave brings its own probabilities. Recent market behavior, particularly how price respects planned zones, highlights the value of pre-arranged trade areas with timing labels. As the market shifts, our focus will be on evaluating each signal against new price movements. We remain observant and adaptable rather than rushing into decisions. Establishing trading rules ahead of time—and sticking to them when levels are reached—shows the highest discipline. Holding tightly as prices approach invalidation zones has often been unwise. Our attention is on the next key level, allowing market structure to guide our actions. Sensible stop placements and proper position sizing will be vital in the next phases of this correction.

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