MicroStrategy Inc. (MSTR) is a business intelligence software firm with various applications above my pay grade. The company has been getting some attention with their purchase of bitcoin. This seems like a bull market strategy until it isn't.
Let's look at some charts on MicroStrategy.
In the daily bar chart of MSTR, below, we can see how prices went from $100 to $1,300 in a few short months. Wow. The shares made a textbook 50% correction down to the $600 area and rebounded off the 50-day moving average line. Someone is looking at the charts. The slower-to-react 200-day moving average line intersects down around $300 so I would consider MSTR overbought even after its correction.
The trading volume has risen strongly into the middle of February and looks to be declining. February looks like a large island top formation. The On-Balance-Volume (OBV) line has been moving lower from the middle of February which suggests that sellers of MSTR have become more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has fallen below the zero line for an outright sell signal.