🔍 Weekly Trade: MSTR Going Strong Alongside Bitcoin?
MSTR shows bullish signs as it holds above its anchored VWAP, signaling a potential trend continuation. Here’s why this setup favors swing and trend traders.
Market Outlook: Bullish
Sector: Technology Services
Risk Level: Moderate
🔍 Breakdown of Entry- Long Continuation
- Stock must break & Close above $379 level for the long entry
- Bullish Momentum- Stock recovered the 50 EMA & Swing High AVWAP
- Extraordinary Bounce alongside the overall market
- Higher High forming breaking above previous lower high at $344
- Volume supporting bullish conviction
- Breaking Above Swing High AVWAP showing buyer dominance
- Price Target is towards the $422.00 level towards the upside
🚨 Risk Management
- Stop is placed below recent and relevant higher low
- $303 is the level that invalidates the current bullish thesis, and would be a perfect level to place stop
- Use proper sizing for risk management (ideally <2% risk per trade)
- Although be on the lookout for any quick downturns, if this happens we should wait and look to see if there is a higher low formed and strength after the bounce.
📝 Final Thoughts
I’m looking bullish on MSTR as it sets up favorably for a potential trend continuation. The stock is currently holding above its anchored VWAP from the recent swing high, signaling that buyers are regaining control of the trend.
Sellers from the highs are now, on average, underwater, which increases the probability of short covering — adding fuel to the buying momentum. This technical setup, combined with strong underlying fundamentals, positions MSTR well for both swing trades and trend-following strategies.
As long as MSTR holds key support levels and remains above critical AVWAP zones, it continues to offer a high-probability, clean risk-to-reward setup heading into the week.
