Here’s your trade on $MSTR – January 14, 2025
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to give you my thoughts here on MicroStrategy ( NASDAQ: MSTR ).
Many of us at Crypto Market Mentor have been trading this since 2023. I have this in my wife’s account and I think her cost basis is like $45.00 or something like that. This has definitely been a big winner for us in the short-term trading perspective because it’s a great swing trader, but also in a long-term perspective.
I think this is a stock that you want to be long or at least be looking at. As long as Bitcoin remains in a strong uptrend this tends to be a great performer. It does trade pretty orderly despite the volatility. We’ve seen these patterns play out time and time again here in MicroStrategy ( NASDAQ: MSTR ) where we have choppy consolidation. And then a nice big advance pushing the stock up a lot followed by choppy consolidation in and around the 50-day moving average.
We’ve seen this movie play out before, and we’re seeing this set up again as we see MicroStrategy ( NASDAQ: MSTR ) right now just under the 50-day moving average. For an actionable trade on this, I want to see MicroStrategy ( NASDAQ: MSTR ) get above and stay above that 50-day moving average, and Ideally give us a close over 382.00 for a definite higher high, and signal a potential trend change on this chart.
If you get that you could use the 50-day moving average as your level to define your risk off of. And then as long as the stock is holding above the 50-day you’re long. And if it breaks down below then you’re out of the trade. This is definitely what I’m looking for tomorrow, especially because Bitcoin has shown a lot of relative strength in this market.
If I bring up IBIT ( NASDAQ: IBIT ) we can see IBIT ( NASDAQ: IBIT ) is well above the 50-day moving average and holding the 8-day and the 21-day right now. Meanwhile, we see SPY ( NYSEARCA: SPY ) down under all the major moving averages. So Bitcoin is holding up better than SPY ( NYSEARCA: SPY ) right now. If you’re going to play Bitcoin I think one of the best ways to do it is by trading MicroStrategy ( NASDAQ: MSTR ).
They do have earnings coming up in early February, but from what I understand it could be a very interesting earnings as MicroStrategy ( NASDAQ: MSTR ) is adopting the FASB fair accounting rules when it comes to their Bitcoin holdings.
So we may see some fireworks in the stock as we lead up to their earnings report coming up in early February. Now as always, at Stock Market Mentor. we recommend not holding a stock over earnings, unless you have a cushion, because otherwise, you’re pretty much gambling.
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