Last week’s violent swings paused at the 389.29 midpoint Hidden Pivot shown in the inset. The shallow pullback from this resistance implies bulls had plenty of energy for a follow-through to the pattern’s ‘D’ target at 410.78. If the stock pulls back to the green line from near the 395 ‘sweet spot’, that would generate an appealing ‘mechanical’ buy signal. So would a pullback to the red line (p=389.29) once p2=400.04 has been touched. Your bid should be tied to a 382.12 stop-loss, but you could substitute naked-short puts for shares..
MSFT – Microsoft (Last:388.13)
