Strategy Stock Takes a Dive—Dead Cat Bounce or Real Recovery?

Another day, another correction—welcome to the casino of modern finance. Strategy stock’s recent plunge has traders scrambling for their crystal balls.

Will it bounce? Of course someone on TV will say ’buy the dip’ with the confidence of a hedge fund manager who missed the crash.

Technical indicators look like a Rorschach test—bulls see oversold conditions, bears see a falling knife. Meanwhile, algos keep trading based on some intern’s Python script from 2021.

Pro tip: If it rebounds, it’s ’resilience.’ If not, just call it a ’strategic repositioning’ like everyone else.

Strategy stock has strong technicals

Technical analysis suggests a strong comeback for MSTR. The daily chart shows the stock formed a double-bottom pattern at $236.10 between March and April. It then broke above the neckline at $341.55 on April 23.

Strategy now appears to be performing a break-and-retest pattern by revisiting the neckline at $341.55. This type of retest often serves as confirmation of a continuing bullish trend.

MSTR also remains above the 50-day and 100-day Exponential Moving Averages, signaling that the broader uptrend remains intact. Therefore, the most likely scenario is a drop to $341 followed by a rebound, first to this month’s high of $428, and potentially to its all-time high of $542.