Michael Saylor, take a bow. I don’t know what is more impressive about this chart of MicroStrategy (MSTR), the run up off the 200-day in September or what it looks like when you zoom all the way out to all-time highs. The recent run is absolutely bonkers though, coming from under $120 on September 5th to $355 in the after-hours session today with Bitcoin near $89k. Truly historic stuff.
A quick look at the Investor Presentation over there and you find that MSTR has 252,200 bitcoins acquired for a total cost of $39,266 per bitcoin as of October 29th, 2024. Quick math here with BTCUSD at $88,500 puts MSTR up 125% on its bitcoin, good for $12.4 billion in gains at $22.3 billion in reserves. MSTR’s market cap sits at $54.8 billion.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding MicroStrategy’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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