Yesterday’s post explained in detail why MSTR isn’t suitable for chasing shorts below 137 (137.5 is the 0.618 level of the major 80–173 swing), and why you should wait for a rebound to around 141 before shorting one lot. 141.25 is today’s first resistance (the second is 146). There’s support at 135–133, so a short-term short can be closed around 137.5–135. Only if 133 breaks will price retest 127.85–126.5. That’s a suitable area to place a limit order to buy the dip, rather than chasing a short and taking profit only once it gets there.
For now, we can’t yet confirm that 135–133 is the bottom of the pullback. The 2–3-day chart timeframe is leaning bearish, and rallies are being capped by it, so any move up is likely to be followed by another retest lower.
For now, we can’t yet confirm that 135–133 is the bottom of the pullback. The 2–3-day chart timeframe is leaning bearish, and rallies are being capped by it, so any move up is likely to be followed by another retest lower.