MSTR WEEKLY
No doubt this is a dangerous stock to short, but I did let me explain why.
First lets look at a weekly chart. The main thing that jumps out at me is MACD, its crossed over in a big way and momentum should carry it lower. Just as it has in the past. Look at past instances when MACD was crossed over like it is now. I will be looking to cover when MACD nears the zero line. Also its 20 week (blue line) has acted as resistance. As it has in the past when the momentum was on the sell side.
Next lets look at the daily chart. I see a head and shoulder formation along with a diamond pattern, pretty negative stuff indeed.
I must say I would much rather own this equity, but I must adhere to what I see. My position size is small while Im short. This stock can gap up or down 20 bucks, so strict adherence to stops must be obeyed.
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