MSTR 50 day MA sucking on price

    Posted by matt on 10th of Jan 2024 at 09:50 am

    MSTR - Chart Link-

    here's part of a write

    Posted by matt on 10th of Jan 2024 at 09:55 am

    here's part of a write up I did in the past on MA's where price  breaks 9 EMA after a trending move then you test the 20 day, and once the 20 is lost you test the 50

    The daily chart of TSLA below shows a simple example of this price action around these moving averages. First off you can see how TSLA entered a momentum uptrend in December and that each pullback found support/bounced off the 9-EMA (magenta). When price is in a strong momentum uptrend, it will tend to follow the 9-EMA up like this. Furthermore, aggressive momentum traders could have placed limit orders near the 9-EMA to catch those low-risk pullback buying opportunities lasting from December and into February.

    Notice that once the 9-EMA was lost -rice did have a quick reaction bounce there in late February off its 20-SMA (in blue), however once price lost the 20-SMA, this opened the door for a sell off down to test its 50-day MA (in red). Furthermore, since price hadn’t tested its 50-day MA for a long time, price bounced nicely off it for a week or so, thus providing an aggressive trader a short-term bounce long opportunity near the 50-SMA. 

    Once price lost the 50-SMA after the lower high bounce, it then fell to its 200-day MA (in green), where once again rallied off and could have provided a low risk entry for a trader.  You can see some of the process repeat itself again in April – May with the 9-EMA and 20-SMA. Observe that once the 9-EMA was lost on a closing basis on May 1st, price bounced logically off the 20-day SMA.

    MSTR - off 170pts...  that's

    Posted by elementsix on 10th of Jan 2024 at 09:54 am

    MSTR - off 170pts...  that's a haircut!

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