Is MICROSTRATEGY INC-CL A (NASDAQ:MSTR) Ready to Break Out of Its Range?

Our stockscreener has identified a possible breakout setup on MICROSTRATEGY INC-CL A (NASDAQ:MSTR). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:MSTR for potential opportunities.

Technical analysis of MSTR

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall MSTR gets a technical rating of 8 out of 10. MSTR has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, MSTR did better than 97% of all other stocks. We also observe that the gains produced by MSTR over the past year are nicely spread over this period.
• MSTR is part of the Software industry. There are 285 other stocks in this industry. MSTR outperforms 96% of them.
• In the last month MSTR has a been trading in the 235.93 - 343.59 range, which is quite wide. It is currently trading near the high of this range.
• MSTR is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so MSTR is still doing slightly better than the market.

For an up to date full technical analysis you can check the technical report of MSTR

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, MSTR has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, MSTR also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 317.77. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 302.38, a Stop Loss order could be placed below this zone.

How to trade MSTR?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.