Here’s Your Trade on Microstrategy ($MSTR) – June 30, 2023
This is Dan Fitzpatrick, and I want to look at MicroStrategy ( NASDAQ: MSTR ) today. You will notice this is on a weekly chart, the daily chart actually looks pretty good too. But I really like this kind of coiled little reversal here on the weekly chart.
The way this works is, it is an inverse head and shoulder pattern, and I am telling you right off the bat, this is what I am looking for, I am looking for a 450.00 price target and I will explain to you why that is.
A head and shoulder pattern, an inverse head and shoulder pattern, think about a dude standing on his head. The way it works is, that you look at a series of lower lows, which we are getting here. And then once you the stock rebound, we still don’t know if this is a head and shoulder pattern or not, it could just be one of these.
And then it pulls back, and it pulls back to a higher low than this one. That’s when you start to get a whiff that this is a head and shoulder pattern. But you still don’t know, yet, because the way this thing is constructed is, you look at the left shoulder, you look at the head, and then you look at what looks to be the right shoulder.
And you draw a line between the peaks, this would be this one, between the peaks between the left shoulder and the head, right here, and then the head, and then the right shoulder, which is up here. But here’s the deal, this just doesn’t work for me, it just doesn’t work for me.
This doesn’t work for me in the traditional way so I just draw a vertical line around what is a pretty logical number, you can even call it 300.00. Once this thing cracks through here, then I go back and look at this, and here it is about $177.00 from 300.00. I like to be conservative in these estimates because I am a conservative guy and I don’t like to overshoot, so we will go 150.00.
And if we go 150.00, then that gives us about 446.00. Now I round up a little bit, and maybe, 450.00. So that, kind of, works for me. And you could, if you want to, say I just want to target 400.00, that’s another 15 percent higher. Again, this is on a weekly chart.
Now, on the daily chart, you can look and see how this thing broke out. Now again, this morning it just blasted off through 430.00 and then 440.00, and then ran up even more after a big massive whipsaw sell-off, which was kind of brutal.
So my suggestion would be, you could use the daily chart to get in if you want. But then I think you really need to zoom out and watch the weekly moves here. My sense is, that the stock is going to go a lot higher.
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