MSTR hitting support but then further downside to fill the gap.Okay guys look at this beautiful chat.
Here you are looking at MSTR on the Daily TF and you have a lot of stuff going on.
Notice the wedge pattern that is forming from the down slopping (yellow) line and the parallel (green) support line. That is forcing action to the corner of the wedge.
You will also notice that before the continued downward movement in the stock there was an attempted breakout (purple box). Now, this is where most investors would have jumped on board and though that this was a true break out, however there wasn't any confirmation.
Without confirmation there isn't a true breakout.
Also notice how the big gap up represented by the green line is now serving as a major support and goes back to 2020. This line has been tagged times now and is beginning to weaken.
Once the green line is weakened enough it will break and head down to the gap fill (represented by the blue line) and you will see a bounce off of that level.
We will continue to monitor the progress of this chart and see if there is enough bullish price action to get through the yellow resistance line or if the bears will win and fill that gap.
Let me know what you think will happen.
Cheers,
