Coming back to Microsoft

 It was quite some time ago that I have an entry on Microsoft, it started with a conversation with my sister-in-law. As a result, there were 2 entries on Microsoft titled Microsoft.... and Microsoft follow-up at the beginning of this year. 

At the time, I estimated the support level of this counter at 267 and if fail, will reach 228 to 247. Since then, it reached and hover between 247 to 267 (give and take), rebounded upward. before another reversal by 14th August 2022.

Fig 1. Microsoft Weekly Chart

Since its reversal, Microsoft has been on continuation down trend. The chart demonstrating lower highs and lows and presently went below the 89-week moving average. Furthermore, its downward movement comes with gap, indicating momentum.

While it attempts to retest the said moving average this week, it remains below the support turned resistance. Not only that, it also fails to exceed the high of the previous bar. 

I believe that Microsoft have more downhill descend.

With the present set up, I can see 2 possible projections for Microsoft, one from top and the other from previous high, the more recent zig zag is more relevant to estimate its support level.

Using the larger zig zag set up, the support can be seen between 186 to 227. Is this a viable level? will Mcrosoft reach this level?

What if I use a shorter zig zag set up? The support seen from this level is between 219 to 248. Microsoft is close to reaching the higher end of this range.

Again, 247is a significant level as this is the previous low of Microsoft.  So breaking this line will make the longer term support more viable.