Microstrategy Extends Rally With 6.59% 3-Day Gain As Technicals Turn Bullish

Microstrategy (MSTR) rose 1.52% to $421.74 in the latest session, marking a third consecutive day of gains and totaling a 6.59% advance over this period. This upward momentum establishes $415.41 as immediate support, with resistance emerging near the $422.40 intraday high.
Candlestick Theory
Recent price action shows three consecutive white candles with higher highs and higher lows, forming a bullish continuation pattern. The 7/9 session generated a strong bullish marubozu (open near low, close near high), signaling conviction. Key support now resides at the swing low of $393.21 (7/8), while the $422.40 level presents immediate resistance. A decisive close above $422.40 could activate upside toward the psychological $450 area, whereas failure to hold $415 might indicate short-term exhaustion.
Moving Average Theory
The 50-day moving average ($388.27) recently crossed above the 100-day ($377.15), creating a bullish golden cross. The 200-day MA ($328.42) maintains a positive slope, confirming the primary uptrend. Current price trades 8.6% above the 50-day MA, demonstrating robust momentum. The sequence (50>100>200) reflects constructive alignment, though extended deviations risk mean-reversion pullbacks toward the 50-day average.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish configuration with the histogram expanding in positive territory (1.73) and both MACD line (13.05) and signal line (11.32) trending upward. KDJ oscillators (K:78, D:74, J:86) approach overbought territory, with the %J line leading at 86. While MACD signals continued upside potential, the KDJ near overbought conditions warrants caution for potential consolidation. No bearish divergence is observed between price and momentum indicators.
Bollinger Bands
Bollinger Bands (20,2) expanded sharply during the 7/1-7/2 volatility surge, reflecting increased momentum. Price currently rides the upper band ($420.25) with bandwidth at 6.8% – moderately elevated compared to the YTD average of 5.2%. This positioning suggests near-term overextension, increasing susceptibility to consolidation within the bands ($411.20-$429.30). A contraction below 5% bandwidth would signal reduced volatility.
Volume-Price Relationship
Recent gains occurred on elevated volume, with the 7/10 session volume (13.21M shares) exceeding the 30-day average by 18%. This volume confirmation strengthens the breakout legitimacy. However, note the 7/7 decline occurred on above-average volume (8.85M), creating a mixed near-term signal. Critical resistance breaks (e.g., $422.40) require sustained volume support to validate sustainability.
Relative Strength Index (RSI)
The 14-day RSI reads 67.8, approaching but not yet breaching the overbought threshold of 70. While momentum favors buyers, the absence of bearish divergence (price and RSI align in upward trajectory) suggests room for further upside. Historically, RSI values above 75 have preceded pullbacks during this cycle. Current readings justify monitored bullishness rather than immediate reversal concern.
Fibonacci Retracement
Taking the swing low of $128.06 (8/13/2024) and swing high of $422.40 (7/10/2025), key retracement levels emerge at $359.31 (23.6%), $310.03 (38.2%), and $275.23 (50%). Recent pullbacks to $373.30 (7/1) found strong support near the 23.6% level, while the current price approaches the 0% extension (full trend). The $359-361 zone now serves as major support confluence, aligning with the June consolidation range.
Confluence and Divergence Observations
Strong confluence exists between the 23.6% Fibonacci level ($359.31), the 200-day MA ($328.42), and volume-supported reversals in June – creating a high-probability support zone. The MACD bullish momentum and RSI trajectory align with moving average sequencing to reinforce trend strength. The primary divergence emerges between Bollinger Band positioning (overextended) and KDJ’s near-overbought readings against constructive moving averages – suggesting potential near-term consolidation within $415-$430 prior to further directional commitment.