MSTR Bull Divergence

30 May

MSTR has seen a fast and sharp correction after rallying nearly 70% into some key levels of resistance , and currently pulling back into the longer term downtrend VWAP, as an attempt to flip the current downtrend.

This zone around $360 is very crucial for me personally, as we are attempting to hold the previous pivot high, and setting a firm low for continuation of the uptrend.

On the hourly timeframe we are finally starting to see some potential absorption here as price continues to make new lows, however the overall strength on the RSI is unable to continue making progress lower.

This is suggesting that the selling pressure may be running low, and MSTR can be due for a bounce.

I have laddered into this current position , and would de-leverage my risk if we start to break the lows as that could be quite a bearish sign, in the meantime, I would like to see some relief after such a harsh downtrend.

30 May

Not

Why I believe this is the support, on the Daily time frame, you can see we are holding this anchored vwap from the recent high. A moving average that is very strong, and previously had held price down.

31 May

Not

fyi you can even keep a tighter stop approx 355 or so on an hourly close.

2 Haz

Not

Market structure trying to flip here, this will be the key zone of importance for me today and I would like to see n hourly close above to start showing strength of the trend reversing

3 Haz

Not

This is key for me, hold this zone would be bullish. Lose $370 and im out. very simple

3 Haz

Not

Reclaiming downtrend VWAP, holding above would be very bullish for me

3 Haz

Not

Very strong resistance here.

I am taking profits on this move up to cover my risk. Reclaiming the zone above, would be very strong and I would look to new ATH.

3 Haz

Not

Resistance is holding us down for now, I will take a short here to hedge my long trade. Looking to VWAP, then if vwap lost then lower

3 Haz

Not

take note of the price action. BTC dropping hard after hitting near 107k, while MSTR is still unaffected. If you are not recognizing this strength, you will not understand what direction can be more probable.

3 Haz

Not

Here is where I want to see price bounce from

3 Haz

Not

Volume profile for the entire downtrend, with the Value area high in the same spot

4 Haz

Not

Would like to see the bounce here to remain bullish

4 Haz

Not

compounding the long trade here as per plan @ 377

4 Haz

Not

Wow we also have the anchored vwap off the low at the same zone. This level if lost would be very bearish, and now that I am seeing this, It provides me more confluence that the level should be strong

4 Haz

Not

Exactly what I want to see. Set alert for a stoploss order below this low now. Would prefer to see the bounce as planned

4 Haz

Not

The trade is a bit more complicated than I would have hoped, however thats trading! So far, we couldnt quite break out of the range and it looks like we may be coming back to the 370 POC which is the most important price to hold. Should it happen, I want to see a strong and fast bounce off the level to remain in the trade. If not, I will just stop out.

5 Haz

Not

Last night, BTC dropped in after hours and MSTR slumped towards 370 in the post market. However, the Market set to open shortly, and MSTR is gapping up. I am not surprised that the trap was set directly at the zone where both VWAPS are in confluence. As I said in the previous comment, these overlap provide a very strong level. Should this bounce materialize and break above the orange value area high, I will be moving the stop up to the 375 zone.

5 Haz

Not

VWAPS holding price up so far

6 Haz

Not

So far, I am still in this trade because I always wait for a clear daily close candle to cut losses, but the reality here is that the trade is a bit tough as MSTR is exhibiting strength despite a massive drop on BTC we closed just $1 off the key $370 zone, and are currently gapping up in market open. So the divergence is very clear to me and keeping me in the position for now. We also bounced off the value area low to the dollar , showing me that there is definitely liquidity sitting below us holding price.

6 Haz

Not

Need the blue POC to hold, still at 370

6 Haz

Not

So we can see the power of the POC in blue, the most traded zone. The flush from yesterday could have been another trap... Lets try and reclaim the downtrend and try to breakout

7 Haz

Not

9 Haz

Not

nice

13 Haz

Not

Looking for this POC to hold here for the next bounce

13 Haz

Not

nicely respected so far