Technical analysis by TheGemHunter about Symbol MSTRX: Buy recommendation (1/6/2026)

MSTR has printed a significant spinning top candle at the 1.272 Fibonacci extension of Wave AB, marking a slightly lower low. This area could serve as an ideal spot for a major wave bottom, provided it holds. Market Structure Thesis; Regular Flat (3-3-5) Wave A: Corrective, overlapping 3-Wave structure Wave B: Overlapping 3-Wave structure retraces deeply, not exceeding the start of Wave-A Wave C: Strong, impulsive move down of 5 waves that exceeds the end of Wave-A A Closer Look On the 2-day chart, a valid 5-wave impulse down that precisely tagged the 1.618 of Wave-B with notable RSI bullish divergence. Also, MACD has crossed the signal line, suggesting bullish momentum.👇👇👇 What Often Follows A Regular Flat? Reaction bounce (often sharp) Common retracement to: 0.382-0.5 of Wave-C OR back toward Wave-B Validation: Price must stop making lower lows. Invalidation: A decisive break below the Wave-C low, not a wick, but a CLOSE. If Price: Makes a lower low after the supposed Wave-C completion, the flat is not finished. Either; C is extending toward the 1.618 fibonacci extension of AB OR this is not a flat Key Levels To Watch The current Wave-C low for validation and the 1.618 retracement of Wave-B for support. A confirmed stop in lower lows would signal that this regular flat may be complete, setting the stage for a significant reaction move. Crypto Traders: MSTR is historically known for being a leading indicator for Bitcoin. So, if MSTR bounces from here, perhaps BTC will follow. Good Luck! - Not Financial Advice-