MSTR Strat from here?MSTR Elliott Wave Outlook Remains Mixed as Key Levels Get Tested
Since our last update, price has bounced out of the level of interest 100 area in a corrective fashion to another identified LOI at 150 and rejected. This reaction keeps the structure unclear and leaves both sides of the market with valid arguments.
From a bullish perspective, there is still a path forward. The move out of 100 could be an motive wave and is now being corrected in the pattern of an expanded flat. There is also a less likely leading diagonal scenario where the recent rejection is simply corrective within a larger structure. Both of these interpretations rely on 100 continuing to hold as support.
However, the price action into 150 does not inspire strong confidence. The move higher appears corrective and lacks the impulsive characteristics typically associated with strength. The rejection at 150 introduces the possibility that this was simply a bear flag formation. If that is the case, the market may be setting up for continuation to the downside.
A confirmed break below 100 would shift the structure clearly bearish and open the door for a lower low. Until that happens, the market remains in a state of uncertainty with mixed Elliott Wave signals.
Outlook
At this stage, the structure remains objectively mixed. Bulls need to defend 100 and show impulsive strength above that level. Bears are looking for continuation through 100 following what may be a completed bear flag.
As always, the focus remains on reacting to what the market prints rather than anticipating. So I am looking at which pattern prints here and playing the pattern the prints.
Trade safe, trade clarity.
Short
