The 435 ‘d’ target of the reverse pattern shown looks too compelling for the stock to have crushed it effortlessly. It did, though, signaling the likely failure of the next rally to achieve new record highs. Even if it did, I’d treat the breakout as a phony and lay in a store of put options that correlate with a sell signal on a chart of lesser degree (aka ‘camouflage’). Let’s first see whether the stock is able to push past the ‘external’ peak at 446.96 recorded last week on the way down.
MSFT – Microsoft (Last:425.44)
