From the last post on MSFT: https://bartscharts.com/2021/09/01/msft-in-outer-space/
a long term position on MSFT was closed earlier this year around 220, it was a good ride. and, frankly, I had forgotten about MSFT ever since but when I was working on the NASDAQ chart I saw how strong it was so curiosity had killed the cat and I took a peak at MSFT. YIKES .. what could have been LOL …
but, I still believe Sir Isaac Newton was correct THAT gravity will pull us back down .. so, I got out my eraser and did the geometry we were taught in elementary school on how to create circles out of lines … from there, we use the center of that circle as our “gravity center” and work geometry from there …
I show the steps below … seemingly, the top of the radius circle is a good target and, believe it or not, I have used it before. so, holy smokes, another 10% from here? sheesh … but, those targets are “real” in that if you look at the arcs that came from the gravity center you’ll see that price hug along those arcs VERY nicely so, figuratively, we have a “good arc” so those targets above are …realistic.
now, that being said, as I was looking (studying) the chart my eye showed me a pretty regular “measured move” as the price crept up the arcs. those are the blue arrows … also, note that the measured move is harmonic w/ the initial move off the bottom at .618. the higher targets – if it keeps on going – align w/ 1.618 times the blue measured move.
if you look on the monthly you will see (even from the low in 2009) that the blue measured move has been present at every pullback. yes, you read that correct, every pullback except the most recent was the first to fail since this entire bull market run …. does that mean we most definitely pullback from here OR do we explode another 10% into the areas shown above? don’t know … but we are most definitely in rarified air up here.
folks, honestly, being in the parabolic wave is quite the rush and I’m 100 percent guilty of getting out too early and I would really love it if someone told me they got in at the exact bottom and took it all the way to the top … bless you if you have! 🙂
finding tops and catching knives is a fools game … we all know that. but you can use geometry to get a clue …
so, taking what I learned in my geometry class I used three points to define a circle, found the gravity center and then use 0 price and drew my arc. it’s below.
is a top coming – oh you betcha your bottom dollar.
is my analysis of that potential top target area correct ? I have NO IDEA.
but, we can watch and wait for a signal reversal candle ….