MSTR Elliott Wave Analysis – Trading Lounge
This analysis examines the current trend structure of MicroStrategy Inc. (MSTR) using Elliott Wave Theory on both the daily and 1-hour charts. Below is a detailed breakdown of MSTR's position and potential future movements.
MicroStrategy Inc. (MSTR) Elliott Wave Analysis – Trading Lounge Daily Chart
MSTR Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Flat
Position: Wave 4 of (3)
Direction: Bearish – Wave 4 movement continues
Analysis & Forecast:
MSTR is currently experiencing a Wave 4 correction within the broader Wave (3). This correction could develop into either a flat pattern or a complex correction. We anticipate further downside movement, with price action possibly breaking below $300 before resuming its upward trend into Wave 5 of (3).
This phase suggests continued volatility, where traders should watch for confirmation signals before entering new positions. The correction might extend further depending on market sentiment and macroeconomic factors.
MicroStrategy Inc. (MSTR) Elliott Wave Analysis – Trading Lounge 1H Chart
MSTR Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Flat
Position: Wave (iii) of {c}
Direction: Downside – Moving lower into wave {c}
Analysis & Forecast:
On the 1-hour chart, MSTR is currently in Wave (iii) of {c}, signaling continued downside pressure. The five-wave completion in Wave (i) of {c} suggests that this move could be either Wave (a) of {y} in a complex correction or part of the expected {c} wave decline.
The overall price action indicates that MSTR remains in a short-term corrective structure, which could push the stock lower before any meaningful reversal occurs. Traders should anticipate increased selling pressure before a potential bullish pivot.
Technical Analyst: Alessio Barretta
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