Watch These MicroStrategy Levels as Bitcoin Hits Record, Stock Added to Nasdaq 100 | Global News Avenue

MicroStrategy (Magnetic transmission technology) following Bitcoin (Bitcoin USD) to set a new record high Over $106,000, company stock was included Nasdaq 100 Index index.

Bitcoin Agent Start Buying legacy cryptocurrencies In August 2020, the company began to diversify its corporate assets, and its stock price has increased more than sixfold since the beginning of the year through Friday’s close as the price of Bitcoin continues to reach new highs.

Nasdaq announced late Friday that the company’s shares will join the Nasdaq 100, meaning sentiment could also be boosted following tracking by the larger index. Exchange Traded Funds (ETFs)such as Invesco QQ Trust (QQ), will automatically become the buyer of the stock.

The stock rose nearly 4% to $424 in recent premarket trading.

Below, we take a closer look at MicroStrategy’s chart and use technical analysis To determine important price levels that investors may be concerned about.

Descending triangle begins to take shape

Since a Bearish Engulfing Pattern Last month, MicroStrategy shares hit an all-time high, and they consolidated in 1 year descending trianglea chart pattern that usually indicates movement in a certain direction breakthrough or break down.

at the same time, Relative Strength Index (RSI) During the stock’s recent consolidation phase, the stock has fallen back below overbought levels, although it has formed a Head and Shoulders ReversalSimilar pattern, possibly pointing to a local bottom in the indicator.

Let’s turn to MicroStrategy’s chart to predict potential breakout targets worth watching and identify a few important ones support level Monitor for possible failures.

Breakthrough goals worth watching

Investors can predict potential breakout targets using the histogram tool, which analyzes previous trends to predict future price movements.

To apply this tool to a MicroStrategy chart, we extracted the recent higher trend that preceded the descending triangle and repositioned it from the upper part of the pattern trend lineit is predicted that there is room for growth keep moving Might play a role in stocks. The target is expected to be around $800, nearly double Friday’s closing price of $408.67, an area investors can watch. Take profits.

Subdivision support levels to monitor

Once the descending triangle breaks below, investors should first focus on the $268 level. This location is currently at 50-day Moving Average (MA)may encounter support around October high swing.

A close below that level could send the stock down to around $227, an area on the chart that investors might seek. entry point Nearing mid-October peak and lows in early November.

Finally, micro-strategy bulls If this area cannot be held, a retest of the lower support at $180 is likely. Investors can look for buying opportunities near this location 200-day moving average and more than a month horizontal line concatenate a series of comparable price action Between March and October.

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As of the date of this writing, the author did not own any of the securities mentioned.