Microstrategy could benefit from the rise of BTC

Good morning, Traders,

Today, we will analyse with @mauricepriolo the chart of MicroStrategy Incorporated (NASDAQ:MSTR), an American company that provides business intelligence, mobile software, and cloud-based services. Founded in 1989 by Michael J. Saylor, Sanju Bansal, and Thomas Spahr, the firm develops software to analyse internal and external data to make business decisions and develop mobile apps.

After the big crash in 2022, a rebound phase from the lows began in January 2023 that led the stock first to test the 200-period Exponential Moving Average and then to the bullish crossing of the 50 Average on the 200 Average, giving an early hint of a trend reversal.
Since the cross, quote prices have steadily exceeded the EMA-200, using it as support in several situations.

In the last few months, we have observed an important lateralisation between the EMA-50 and the EMA-200 (SHIMANO); after several attempts to break the EMA-50, there has finally been a close above the resistance level in the last few sessions. In addition, the ANTICROSS signal reported by the indicator highlights the failure of further declines and confirms the validity of the given support of the EMA-200.

The levels to monitor for further bullish momentum are:
- Last week's high (white line) at 362.00 could be an important trigger point for an upward acceleration
- The first target zone (green rectangle) at 440.00, congestion area before the annual highs at 475.09
- The second target zone (red rectangle) is in the 500.00 area, the resistance zone that rejected the price in March 2022

Analysing the Intraday Timeframes, we find an upward crossing of the Slow Averages on the 1H chart, confirming a change of trend in the short term; we can await the Breakout movement by helping with the EMA-10 or using the EMA-50 as support, an eventual close below the EMA-200 could invalidate the bullish scenario of MSTR.


Taking a look at the data provided by Tradingview, the stock is aiming to hit its targets of returning to positive Earnings Per Share (EPS), from -129 in 2022 to an expected 30 in 2023, with the first half of the year seeing revenues in line with early year forecasts. Also, from the news provided by Trading View (source router), the stock is linked to Bitcoin's performance and could benefit from consolidating the 30,000 level by the cryptocurrency. The earnings release scheduled for November 1 is expected to give volatility to the stock, which has beaten market expectations so far.

In collaboration with @mauricepriolo

Thanks for the support.