MicroStrategy Slumps 3.33% Amid Bearish Technical Signals And Death Cross Formation

Strategy (MSTR) declined 3.33% in the latest trading session, closing at 330.26. This recent downward movement forms part of a broader technical context, analyzed below across multiple frameworks.
Candlestick Theory
Recent price action shows concerning signals. The August 22nd session formed a bullish hammer (low: 332.61, close: 358.13), indicating temporary support. However, this was followed by a shooting star on August 19th (high: 364.63, close near lows at 336.57), suggesting rejection near resistance. The most recent red candle closing near session lows reinforces bearish control. Key support emerges near 325-330 (tested August 20th and September 3rd), while resistance solidifies around 341-345 (failed breaks on August 25th and September 2nd).
Moving Average Theory
The 50-day moving average (currently near 348) crossed bearishly below the 200-day MA (near 322) in August, confirming a death cross. The 100-day MA (near 365) adds overhead resistance. Current price trades below all three key averages (50/100/200-day), establishing a clear downtrend. Repeated rejections near the declining 50-day MA (notably on August 25th and September 2nd) demonstrate its effectiveness as dynamic resistance.
MACD & KDJ Indicators
MACD shows bearish momentum, with the signal line above the MACD line and both below zero. However, a minor positive divergence appeared in late August as price made lower lows while MACD leveled – though it failed to generate meaningful recovery. KDJ oscillators reflect oversold territory (K: 25, D: 30, J: 15), suggesting potential near-term exhaustion. Yet the predominant alignment leans bearish, with KDJ struggling to sustain above 50 during bounces.
Bollinger Bands
Bands widened sharply during the mid-August volatility spike, reflecting elevated selling pressure. The subsequent contraction indicates decreasing volatility, often preceding decisive moves. Price consistently tests the lower band, last touching it on September 3rd. A sustained break below 325 would likely trigger renewed band expansion downward. Upper band resistance aligns with the 50-day MA near 348.
Volume-Price Relationship
Distribution patterns stand out, with higher volume accompanying declines (August 19th: -7.43% on 18.25M shares; September 3rd: -3.33% on 9.14M shares). Recent up-days show comparatively weak volume (August 26th: +2.38% on 9.14M vs down-day volumes). This divergence suggests lackluster buying conviction. The August 22nd bounce saw unusually high volume (17.39M shares), establishing that level (332-335) as high-interest support.
Relative Strength Index (RSI)
Daily RSI sits at 42, avoiding oversold conditions (<30) but trending downward from neutral levels. It registered oversold signals in early August and late May without triggering sustained recoveries, demonstrating its limitations in strong trends. Currently, RSI’s inability to breach 55 during rallies aligns with bearish momentum. Weekly RSI (not shown) remains below 50, reinforcing the larger downtrend.
Fibonacci Retracement
Applying Fib levels between the April 2025 high (~455) and June 2025 low (~322) reveals key thresholds. The 38.2% retracement (383) provided resistance throughout July. The 50% level (388) capped rallies in early August. Recent breakdown below the 23.6% level (341) confirms bearish continuation. Next meaningful support aligns with the June low near 322, while a recovery above 341 is needed to challenge the short-term downtrend.
Confluence and Divergence Notes
Confluent bearish signals dominate: Price below all key MAs with death cross confirmation, volume-supported breakdown of Fib 23.6% (341), and MACD negative posture. Notable divergence appeared late August when price made lower lows while MACD leveled and RSI held flat, hinting at potential stabilization – though this failed to materialize into strength. The KDJ oversold reading lacks confirmation from volume or candlestick reversal patterns. Probabilistically, the evidence suggests continued downward pressure targeting 322, with rallies likely capped near 341-345 absent significant volume-driven reversal signals.