This is our first analysis for Strategy.
Strategy has historically demonstrated a very impulsive structure, accompanied by deep corrections — something we are currently observing in this stock once again.
The market peaked in correlation with Bitcoin at $543.00, from which point Strategy moved into a prolonged long-term corrective phase, mirroring Bitcoin's trajectory. However, we expect this stock to be nearing the conclusion of this correction and the formation of its long-term bottom. As this asset is highly correlated to Bitcoin, we strongly recommend taking action on this stock only once Bitcoin has confirmed a major bottom.
However, we expect the market to move higher within a corrective structure, building a degree of optimism, before this stock ultimately disappoints and breaks below $81.81 — dropping into our Fibonacci retracement zone, where the overall correction should come to an end. From there, the market should resume its upward trajectory with a very high correlation to Bitcoin, once Bitcoin has confirmed a major bottom.
Long Entry Levels:
- 123.6% at $82.14
- 138.2% at $68.54
- 161.8% at $46.57
Stop Loss: 1% below the zone at $46.09
This represents our primary scenario for this stock. Given its high correlation to Bitcoin, we do not believe this stock has already formed its major bottom.
As an alternative, the bottom could potentially already be in place, with the market forming its first major impulsive fractal ahead of a long-term uptrend. However, as long as Bitcoin remains in a bear market, this alternative carries a very low probability. The alternative is illustrated as green alt. 2 on the chart.
Should anything happen with this stock, we will update you immediately.
Kind regards,
Monalytics
DISCLAIMER: The content on this website, including charts, analyses, and recommendations, is for informational purposes only and does not constitute financial, investment, or professional advice. Trading and investing involve risk. You should consult a qualified financial advisor before making any investment decisions.