This is why I think MicroStrategy ($MSTR) is about to blast off! – October 4, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at MicroStrategy ( NASDAQ: MSTR ) today. I’m tired of looking at stuff that was a great trade yesterday, or even today, stuff like that. This is one that I think is setting up pretty nicely as you know.
First of all, earnings aren’t an issue, they’re not for a month away. And also, who the heck cares what MicroStrategy’s ( NASDAQ: MSTR ) earnings are? This is just a proxy for Bitcoin, this is a Bitcoin bank. So it really does trade a lot like Bitcoin, only guess what? You don’t have to have a wallet, other than the wallet you put your money in.
A lot of people like this kind of thing, they like trading ETF’s like IBIT ( NASDAQ: IBIT ), and stuff like that. I’ll trade that, but at least for me, a pretty large stake in Bitcoin, that’s what works for me. And that’s what’s working for everybody over at Crypto Market Mentor too. The way Bitcoin and this other crypto market are starting to shape up, I think we are about ready for the next leg higher.
I’m going to take a look at MicroStrategy ( NASDAQ: MSTR ), then I’ll pull in Bitcoin, and then come back to this. You can see how this level of about 180.00, they had a 10-for-1 stock split, so it used to be like 1800.00. You can see how this 180.00 level is a pretty solid resistance here.
I would expect, just because this time is rarely different, I would expect that if this comes back up to test 180.00, it’s going to struggle to get through. That’s less than 3.5 percent above where it is right now, so I think you’ve got to look at this as the ceiling. Or put another way, if you buy it right now in anticipation of the breakout, you get an advantage of about 3 percent, maybe a little more, maybe a little less. You get an advantage of about 3 percent in return for taking the risk that this thing might not break out.
To me, that’s not a really good risk/reward, where, if you do that, where do you sell if the stock starts falling back? Do you sell here, 5.75 down? Do you sell down here? How do you manage your risk? I think in this kind of stock, where you’ve got this solid resistance level that’s been happening for 6 months or whatever, you need to wait for confirmation that your theory is correct.
That is, that I think MicroStrategy ( NASDAQ: MSTR ) is going to break through here. I just don’t know if it’s here, or if it’s here, what’s going to happen. So you wait, be patient, don’t be eager to get in this trade because right now, frankly, there is no trade. The trade is up here, the trade is up here, if and when MicroStrategy ( NASDAQ: MSTR ) breaks through.
Now, I’ll pull Bitcoin into the situation here. And now we’ve got a chart that has, I would say, one resistance line at $72,000.00. But we can also draw it this way and just stretch this down between peaks, maybe start here, and then bring it down like that, to find out what the best trendline is.
As I look at this, I don’t think Bitcoin needs to get clear up here in order to push MicroStrategy ( NASDAQ: MSTR ) through. Frankly, I think if it got up to this level, about 65, something like that, about 65, maybe 66,000, which isn’t too far away from where it is now, I think we could get MicroStrategy ( NASDAQ: MSTR ) to have a really nice pop.
So I think you should just keep this on your radar. I’m setting an alert at 180.00. I think I’ll also set it at 179.00, just for an early heads-up. This is a way that I can trade like this and say, Okay, I don’t have to be tempted to have a trade here by continuing to look at this chart and monitor it. I have a trading assistant, it’s called, my alert system.
If that trading alert system says, Hey Dan, this is 179.00, you better look at this, I will, I’ll get an early look at it. Or hey, it’s 180.00, maybe even we’ll do it this way, 181.50. So if the stock does break out and it gets up to 181.50, I’ll get the heads-up on that too. Because once this stock starts moving, I think you’re going to see the next leg higher, and it’s going to be an awesome one. So check this out.
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