MicroStrategy (MSTR) has recently faced a significant correction after forming a bearish divergence on the monthly RSI. This bearish signal marks the
MicroStrategy (MSTR) has recently faced a significant correction after forming a bearish divergence on the monthly RSI. This bearish signal marks the beginning of a downward trend, supported by the MACD histogram, which has started ticking bearishly lower this month. Despite the correction, the stock has surged by nearly 4,000% in just over two years, underscoring its remarkable long-term performance. The EMAs and MACD lines remain bullishly crossed, confirming that the long-term outlook for MicroStrategy remains bullish.
However, in the short- to medium-term, the stock is expected to face further downside as it navigates through its correction phase. On the 4-hour chart, the stock faces rejection at the 50-EMA, while on the weekly chart, bearish MACD signals further support this short-term negative bias.
Key support levels include $335 and the 200-4H-EMA at $301.8, with significant long-term support at the 50-week EMA of $229. If the stock breaks the critical Fibonacci support at $190, the uptrend could be invalidated, potentially signaling a shift into a bear trend.
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