Chart of the day

MSTR retest of the previously broken resistance

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.

MSTR 15 days chart

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

MSTR trading strategy