The chart shows a high probability of a significant drop of value - complete failure? - of Microstrategy.
Fortunately, a similar head and shoulders is not visible on the underlying asset held by MSTR, #bitcoin. That said, MSTR does hold a leveraged position in #bitcoin, so the possibility of default is real. It's just not as real as indicated by this chart. I suspect this is a rare case ( ~ 20% chance) that the H&S pattern fails; hence, I am neutral on this asset.
Not a good look. Prob. a good time to buy the fear.
Fortunately, a similar head and shoulders is not visible on the underlying asset held by MSTR, #bitcoin. That said, MSTR does hold a leveraged position in #bitcoin, so the possibility of default is real. It's just not as real as indicated by this chart. I suspect this is a rare case ( ~ 20% chance) that the H&S pattern fails; hence, I am neutral on this asset.
Not a good look. Prob. a good time to buy the fear.