Chart of the day

Where do we stand fundamentally?

MicroStrategy (MSTR) has seen strong growth in 2024, largely due to its heavy Bitcoin holdings. The company’s stock price recently hit a six-month high, boosted by BlackRock's increased investment in MSTR, which reflects rising confidence in Bitcoin-related assets. This year alone, MSTR stock is up 470%, outperforming Bitcoin's returns. BlackRock now holds a 5.2% stake in MicroStrategy, which has reinforced the stock's rally, especially as Bitcoin recently surged past $71,000​

MSTR is retesting the previously broken upside resistance of 218. We need a bounce from here for an upside continuation in the uptrend third Elliott Wave to 400 and higher. Invalidation of this immediate upside extension could come upon a break below 184.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 100 meaning we are in the strong bull uptrend. As said the continuation of an extension could lead to a 420 target in the medium-term to long-term if MSTR bounces here and sustains a breakout above 220.

_{Try a long trade entry with a stop loss below 160 to target 400 and higher. You can trade it with options as well}