Elliott Wave outlook: Microsoft (MSFT) appears to be entering a three-wave corrective phase following a completed impulsive move.

Microsoft (MSFT) reached a major all-time high of $555.45 on July 31, 2025, before entering a sharp correction that bottomed at $356.07 on March 28, 2026—identified as wave (II). Since then, the stock has begun advancing in wave (III), although a break above $555.45 is still needed to fully rule out the risk of a double correction. The rally from the wave (II) low formed a clear five-wave impulse, reinforcing the bullish outlook as long as price holds above that base.

From the March low, wave (1) peaked at $386.29, followed by a pullback in wave (2) to $367.05. Wave (3) then extended higher to $433.94, before wave (4) corrected to $404.61. The final push in wave (5) reached $445.24, completing wave ((1)). Currently, the stock is undergoing a pullback in wave ((2)), correcting the cycle from the March low.

This corrective phase is expected to unfold in either three or seven swings before the broader uptrend resumes. In the near term, as long as the pivot at $367.23 holds, dips are likely to attract buyers, supporting the case for continued upside within wave (III).