MicroStrategy -1.3% Tests Support, $515 Target Remains Intact
$Strategy(MSTR)$
MicroStrategy(MSTR) Slides -1.33%: Bitcoin Proxy Tests Support, $515 Target Intact Despite Volatility
Latest Close Data
MSTR closed at $158.24 on Dec 19, down -1.33% (-$2.14), trading within a $157.43-$169.51 range.
Stock sits 65.4% below its 52-week high of $457.22 but holding above critical $155.61 support level.
Core Market Drivers
Bitcoin's recent volatility continues to pressure crypto-proxy stocks, with MSTR experiencing significant capital outflows totaling -$202.6M over the past 5 trading days.
Despite headwinds, the company maintains its aggressive Bitcoin accumulation strategy, supported by strong institutional backing from major holders including Capital Research (7.15%) and founder Michael Saylor (6.96%).
Technical Analysis
Volume of 17.53M shares (0.88x ratio) indicates below-average participation.
RSI(6) at 26.57 signals oversold conditions, while RSI(12) at 30.97 approaches oversold territory.
MACD shows bearish momentum with DIF at -17.18 and DEA at -18.52, though the gap is narrowing suggesting potential reversal setup.
Key Price Levels
Primary Support: $159.61 (critical hold level)
Strong Resistance: $182.61 (immediate breakout target)
Immediate Pivot: $167.00 (pre-market reference)
Valuation Perspective
Trading at P/E 6.52x and P/S 95.66x, MSTR's valuation reflects its hybrid nature as both software company and Bitcoin treasury play.
Current metrics appear stretched relative to traditional software peers but reasonable given Bitcoin exposure premium.
Analyst Targets
14 analysts maintain bullish outlook with average target of $515.01 (range: $425-$705).
Recommendation breakdown: 4 Strong Buy, 10 Buy, 2 Hold, reflecting strong institutional confidence despite recent weakness.
Weekly Outlook
Expect continued volatility in $155-$175 range as stock digests recent selling pressure.
Key catalysts include Bitcoin price action and potential year-end rebalancing flows. Break above $182.61 could target $200+ zone.
Risk Disclaimer
This analysis is for informational purposes only and not investment advice. Cryptocurrency-related stocks carry high volatility risks. Past performance does not guarantee future results.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
