Today's great news from MSFT about big payouts to shareholders gave MSFT a nice lift in afterhours trading.
My elliott wave count indicates the party will be short lived. Since the lows in July '02, the wave pattern that jumps out for MSFT is a WAVE B triangle.
Wave A is from $30.70 to $29.48 length = $8.78 Wave C is from $22.55 to $30.00 length = $7.45 Wave E is from $24.01 to something less than $31.49
The reason Wave E should end at something less than $31.49 is anything greater would make Wave C the smallest of the motive waves, a violation of the rules.
The line connecting the tops of Waves A and C extend to the $30.50 area over the latter stages of Wave E. After hours price of $29.91 gives limited upside potential the next week or so.
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