Brace for Impact: Volatile Strategy Stock Primed for Wild Ride—Crash Before the Rally?

Analysts are sounding the alarm—or maybe just drumming up drama—as a high-stakes strategy stock teeters between collapse and comeback.

Here’s the playbook: This isn’t your grandma’s blue-chip. One wrong headline could trigger a nosedive before institutional FOMO sends it screaming back up. Classic Wall Street whiplash—where ’risk management’ means betting your bonus on after-hours leverage.

Pro tip: Watch the derivatives market. If open interest spikes during the dip, the vultures (sorry, ’contrarian investors’) are already circling.

Just remember: In finance, ’strategic volatility’ is code for ’we have no idea—but the charts look cool.’

Prime Setup Signals Breakdown

Sir Chartist points out that MSTR has slipped below its 9-day exponential moving average and its 20-day simple moving average. Those lines are now converging in a bear-leaning pattern. When that happens, short-term momentum often fades fast. He notes that April’s trend—where green candles kept driving the stock higher—has given way to heavier selling.

Let’s break down this chart on $MSTR.

At the end of this thread I will give my opinion on it as of TODAY!

As traders and chartist, knowing and STUDYING charts is KEY to success.

Lets have a look

THREADpic.twitter.com/gqxG9yRx2d

— SIR CHARTIST (@ChartBreakouts) May 24, 2025

Volume Trends Could Mark A Bottom

He’s watching for a panic-driven drop toward $350. Volume spikes on red days mean sellers are in control. But a sharp fall followed by lower selling volume and bigger green bars could signal the end of the decline. Based on reports, he’ll only flip bullish once buying volume clearly outpaces the selling.

Strategy (formerly MicroStrategy) plans to raise $2.1 billion through a stock sale. That money will go straight into more Bitcoin. On one hand, more BTC could lift the share price later on. On the other, fresh shares hitting the market might weigh on MSTR while the deal is underway. Sir Chartist says this dilution effect is part of why he expects the initial slide.

He reminds investors of the breakout from an earlier sideways channel. That move delivered a little over 100% gain with barely any pullback. Based on that pattern, he argues a repeat rally is likely once the stock stages its next low. His view: history doesn’t repeat exactly, but it often rhymes.

Crypto analyst Ali Martinez has also chimed in. He saw a TD Sequential sell signal on MSTR’s weekly chart, which often flags a pending drop. And Strategy’s recent Bitcoin buy—7,390 BTC for roughly $765 million—lifted the stock above $400 earlier this week. Yet even that big purchase wasn’t enough to stop the bearish signals on the charts.

In short, Sir Chartist is calling for a quick shakeout toward $350 before a bigger rally. He’s leaning on moving averages, volume shifts, past breakouts and Bitcoin’s pull.

Featured image from Livewire Markets, chart from TradingView