MicroStrategy (MSTR) is trading sharply lower Wednesday, reflecting the company's increased expenses and losses on its bitcoin holdings.
Let's check out the charts and indicators of this company helmed by billionaire Michael Saylor.
In the daily bar chart of MSTR, below, we can see that the shares have swiftly declined from an early November high. The stock sank to a late-January low and bounced for two months to a late March high.
The current weakness has been brutal to longs and wiped out gains even faster. MSTR is trading below the declining 50-day moving average line and below the bearish 200-day line.
Trading volume has increased on this decline and that tends to confirm the weakness. The On-Balance-Volume (OBV) line has been weak since August and has been weak even when MSTR rallied. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of MSTR, below, we can see a bearish picture. Traders who think old support levels may be important are probably looking at the $100 for support. The problem with this thought is the further back in time you look on the chart the less reliable a support area becomes. The slope of the 40-week moving average line is bearish.
The weekly OBV line is bearish. The MACD oscillator is bearish.
In this daily Point and Figure chart of MSTR, below, we can see that the software is projecting the $0 -zero area as a price target.
In this weekly Bitcoin futures bar chart, below, we can see that a weekly close below $30,000 could precipitate still further losses.
Bottom-line strategy: The charts and indicators for MSTR are bearish. The chart of Bitcoin futures is bearish. I do not expect this to end well.
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