MSTR may not be advisable to go longBased on the chart analysis of MicroStrategy Incorporated (MSTR), it may not be advisable to go long at this time. Here are the key reasons:
Technical Indicators
Current Price (CMP): $131.28, which is below the 50 MA, 150 MA, and 200 MA, indicating a bearish trend.
Moving Averages: The stock is not meeting the criteria for a bullish trend reversal as per the Mark Minervini template.
Relative Strength (RS) Rating: 84, which is decent but not supported by other bullish indicators.
Earnings and Sales
Recent earnings show a significant decline, with a 478% drop in EPS and a 7% decrease in sales year-over-year.
Volume and Market Sentiment
U/D Volume Ratio: 0.9, suggesting more selling pressure than buying.
Volume Trends: Recent volume is lower than the average, indicating reduced trading interest.
Conclusion
The stock does not currently meet the criteria for a strong buy according to the Mark Minervini template, and the technical indicators suggest a bearish outlook. It may be prudent to wait for more positive signals or a trend reversal before considering a long position.