Chart of the Day - Thursday, November 21, 2024

Patrick Dunuwila
November 21, 2024

Chart of the Day


🏆 Today's Chart of the Day was shared by @CyclesFan.
 

  • MicroStrategy Inc. ($MSTR) dropped -16.2% today, marking its worst day in six months. It gapped up +13% this morning before dumping throughout the day. However, it's still +16.6% this week. 
     
  • CyclesFan points out that today's reversal created a Bearish Engulfing candle on the daily chart. This bearish reversal candle could mark a short-term top for $MSTR if confirmed with further downside tomorrow. 
     
  • Today's reversal occurred after reaching a confluence of Fibonacci resistance around $500. It reached the  4.236% extension of the 2022 decline and the 1.618% extension of the dot com bubble bust. 
     

The Takeaway: After hitting two major Fibonacci targets today, $MSTR dumped -25% from where it opened, creating a Bearish Engulfing candle. This candle could mark a short-term top if confirmed with further downside tomorrow. 

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