When we reviewed MicroStrategy was on March 12, we wrote that, "In the short-term the chart of MSTR is going to be tied to the movement of Bitcoin. I think bitcoin is vulnerable to a decline. A decline to $617 on MSTR could precipitate further declines."
The shares did break $617 and declined to $400 in May as prices tested the rising 200-day moving average line. Prices retested the 200-day line in June and rallied back above the declining 50-day moving average line.
The On-Balance-Volume (OBV) line declined from February to a low in June and now looks like it is firming again. A rising OBV line is a positive sign for MSTR.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal. An outright buy signal may not be too far off.