Microstrategy stock [MSTR] reclaims $1500 DESPITE Jim Cramer’s advice

MSTR has been added to the MSCI Index and could boost visibility and investment
MSTR extended its recovery on the price charts, reclaiming the $1500-mark on Wednesday

As an analyst with a background in studying market trends and stock performance, I find MicroStrategy’s (MSTR) recent developments noteworthy, especially given Jim Cramer’s caution against buying MSTR to gain exposure to Bitcoin (BTC). However, the market seems to have defied Cramer’s advice, with MSTR recording an impressive recovery on Wednesday.

As a financial analyst, I’d rephrase it this way: I, Jim Cramer, host of CNBC’s Mad Money, have advised against purchasing MicroStrategy shares as a means to access Bitcoin [BTC] for investors. Instead, I encouraged my audience to consider investing directly in the cryptocurrency itself.

In contrast to Cramer’s warnings against purchasing MicroStrategy (MSTR) stock, the company experienced a notable rebound on Wednesday, resulting in more than 15% growth on the stock market charts. This surge outpaced Bitcoin (BTC), which only saw gains of around 7.5% during the same timeframe.

MicroStrategy stock rallies after MSCI inclusion

It’s noteworthy that MicroStrategy’s stock potentially could have received a twofold positive impact. The initial catalyst might have come from being added to the MSCI (Morgan Stanley Capital International) index.

As a Bloomberg ETF analyst, I consider it significant for MicroStrategy that their stock has been added to a popular index. This addition will boost MicroStrategy’s exposure to potential investors and create new opportunities for them.

Additionally, the surge in Bitcoin’s price beyond its recent low point on Wednesday benefited Mastercard (MSTR). This was particularly significant because important technical indicators turned positive on Bitcoin’s price graphs.

Microstrategy stock [MSTR] reclaims $1500 DESPITE Jim Cramer’s advice

MSTR’s stock price reached a high of $1999 in March, but it declined significantly to hit $1009 by the end of April. However, since then, the stock has been gradually recovering. It surpassed the 50% Fibonacci retracement level of approximately $1219 and the 38.6% Fibonacci retracement level of around $1397 in May.

Furthermore, the stock’s price surpassed its 20-day moving average (represented by the blue line) on Tuesday, suggesting increased buying activity for Microsoft Corporation (MSTR) following the MSCI inclusion update. The market concluded above $1500 on Wednesday, thereby reversing the bearish trend and signaling a bullish shift in the higher timeframe price charts.

As an analyst, I’d interpret this as follows: Based on current market conditions, Mastercard (MSTR) could potentially reach a new high of $1631 in the near term. Subsequently, if the stock continues to perform well, it might even surpass its all-time high of $1999. The Relative Strength Index (RSI), which measures buying and selling pressure, indicates robust buying power, aligning with these bullish predictions.

At this point, the Average Directional Movement Index (ADX), which measures trend strength, stood at a reading of less than 20 (14) as of the latest update. Therefore, it’s important to exercise caution since the price momentum remains neutral according to this indicator.

Noteworthy is the fact that Mastercard Incorporated (MSTR) had gained more than 100% in value year-to-date, contrasting Bitcoin’s (BTC) 50% increase. Nevertheless, the significant correlation between MSTR and BTC may lead to further price escalation for MSTR as Bitcoin recovers towards its $71k range high.

2024-05-17 00:07

MicroStrategy stock rallies after MSCI inclusion

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