🔍 Weekly Trade: MSTR Continuing Bitcoin Momentum
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: Extremely Bullish
Sector: Technology Services
Risk Level: Moderate
🔍 Breakdown of Entry- Long Breakout
- If Stock breaks decisively above $424 level the bullish momentum will continue
- Bullish Momentum- Stock recovered the 50 EMA & is above the Swing High AVWAP
- Extraordinary Outperformance - Compared to the market
- Volume supporting bullish conviction
- Earnings Momentum- remains strong and looking for more upside
- Price Target is towards the $539.00 level towards the upside
🚨 Risk Management
- Stop is placed below recent and relevant higher low
- $364 is the level that invalidates the current bullish thesis, which would be an ideal place to place stop loss.
- 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 with a potential breakout above previous resistance of $416, which will allow for full buyer dominance.
