MicroStrategy (MSTR) has been one of the top performing stocks in recent years, with a major bullish cycle starting in 2002. Currently, the stock is showing a 3-wave uptrend and is expected to complete a 5-wave advance before a major correction occurs. The recent peak in March 2024 is believed to be a wave III, followed by a sideways price action in a triangle wave IV. As long as MSTR holds above the September 2024 low of $113.69, it is expected to continue rallying higher within a wave V.
The initial target area for the 5th wave is between $222 and $260, based on inverted Fibonacci levels of wave IV. However, MSTR could potentially extend beyond this area and reach the equal legs area of the 2024 connector, leading to a higher target range of $287 to $331 before the next correction. The overall technical structure for MSTR remains bullish, indicating more upside within the weekly cycle.
Given the bullish outlook for MSTR, it is not recommended to sell the stock. Instead, buying the pullbacks in 3, 7, or 11 swings within the daily cycle is advised. This strategy allows investors to capitalize on potential opportunities for gains as the stock continues its upward trajectory towards the projected target areas.
In conclusion, the Elliott Wave Theory points to a positive outlook for MSTR, with further potential upside in the coming weeks. Investors should keep an eye on key levels, such as the September 2024 low of $113.69, as a signal for a continuation of the bullish trend. By strategically buying on pullbacks within the daily cycle, investors can position themselves to benefit from the expected rally towards the target ranges of $222 to $260 and potentially even higher at $287 to $331.
