Microsoft just did what every impatient trader hates… after a massive rally, the candles are shrinking, emotions are rising, and here comes the correction everyone said ‘couldn’t happen.’ Today I’ll show you—using pure supply and demand—why MSFT is being magnetically pulled back into the monthly demand imbalance like a toddler to a candy shop. No fundamentals, no drama… just price action, imbalances, and patience. Let’s dive in.

Microsoft Monthly Supply & Demand Analysis

After Apple’s strong monthly correction setup, Microsoft (MSFT) is showing the exact same pattern — but even cleaner.

This is what I love when I teach traders to learn to trade stocks using pure price action and supply and demand imbalances. You don’t need news, earnings, or any guru opinion — everything is already priced in at the higher timeframes. Just like I explained in the Supply and Demand Free Course , the bigger timeframes tell you what the professionals already did months ago.

Let’s break it down.

Massive Rally From Monthly Demand: The Birth of a New Imbalance

Microsoft printed a new monthly demand imbalance of around $402.

From that level, price exploded with huge, wide-bodied candles — the classic footprint of institutional accumulation. No retail trader buys like that. That’s pure, clean imbalance.

You could almost hear the buyers saying:
“Move out of the way… we’re taking this to the sky.”

And they did.

Candles Shrinking = Momentum Weakening

Fast-forward to mid/late 2025:

• The wide-bodied candles disappeared
• Small-bodied candles appeared
• Then came the big bearish candle

This is classic momentum decay. This is exactly when most traders start acting emotionally:

• They zoom into 5-minute charts
• Their IQ drops by 50 points
• They forget the trend
• They forget the imbalance
• They become chart zombies

But price action never lies — we’re simply seeing exhaustion after a massive markup.

Monthly Chart Bias: Retracement Toward the Imbalance

Microsoft is now dropping as expected. The magnetism of demand is pulling price back toward the $402–$345 area — the fresh monthly imbalance displayed on the chart you provided.

This is the same pattern as Apple:

• Strong rally
• Clear imbalance
• Shrinking candles
• Momentum failure
• Retracement into demand

This is textbook Set & Forget methodology.

Price is simply returning home. And home is the imbalance.

Who Is in Control Right Now?

Demand is not in control on the big picture, but we’re in the retracement phase.

That means:

• No longs in the middle of nowhere
• No emotional buys at the top
• No trying to outsmart the imbalance
• And absolutely no guessing

Let price come to the monthly demand imbalance.
We wait.
We observe.
We don’t chase.

This is why I always say trading is an exercise in patience, not intelligence.

Expectation for Microsoft (2025–2026)

Based on pure supply and demand:

$MSFT Likely Path

✔ Price continues correcting lower
✔ Retraces to the monthly demand around $402

Macro “story” is irrelevant

We don’t care about AI hype, Copilot, OpenAI deals, earnings, or inflation. Price action already priced all of that in when the monthly imbalance was created.