MicroStrategy (MSTR.US) launched today's trading with a massive bearish price gap. While the company focuses on business intelligence software and cloud services, it has attracted a lot of attention in recent months due to its investments in cryptocurrencies. Company is said to hold over 105 thousand Bitcoin, following a recent purchase financed with issuance of $500 million in debt. Given that the company invests in cryptocurrencies with borrowed funds, one should not be surprised by lacklustre performance of MicroStrategy stock at the beginning of the Wall Street session, when Bitcoin was trading near the $30,000 mark.
However, as cryptos began to regain ground so did MicroStrategy stock. Share price trimmed daily decline to around 5.5% after trading over 11% lower at one point at the beginning of today's cash session on Wall Street. Nevertheless, the downtrend structure on MicroStrategy chart remains clear and intact. The first near-term resistance to watch is marked with a recent peak at 23.6% retracement of a downward move launched in February 2021. Should we see a break above this hurdle, the next target for bulls will be the $730 area. This is key resistance to watch as it is marked with the upper limit of the Overbalance structure. In theory, the break above it could hint at trend reversal.
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Source: xStation5
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