Trader Robot Mastery: +7.13% Profit Achieved for $MSTR Holdings
Recently, the "Trend Trader, Popular Stocks: Price Action Trading Strategy (TA&FA)" bot factory showcased its prowess by delivering a noteworthy +7.13% gain while trading MSTR over the past week. Let's delve into the technical analysis of MSTR, focusing on recent price movements, earnings results, and key industry metrics.
Price Action and Trend Analysis:
MSTR displayed a significant shift in momentum as it rose above its 50-day moving average on October 19, 2023. Historically, in 31 out of 38 similar instances, this shift from a downward to an upward trend led to further price increases within the subsequent month. The statistical odds of a continued upward trend stand at an impressive 82%.
Earnings Report Overview:
However, amidst this positive trend, the latest earnings report on November 01 presented a contrasting picture. MSTR reported earnings per share of -897 cents, significantly missing the estimated 30 cents. With 913.72K shares outstanding, the current market capitalization rests at 7.39B. This unexpected dip in earnings warrants a closer look at the factors influencing MSTR's financial performance.
Market Capitalization Comparison:
Comparing MSTR's market capitalization to the Packaged Software Industry, the company sits below the industry average of 8.79B. Notably, giants like MSFT hold the highest valuation at 2.75T, while the lowest valued company, BLGI, stands at 291. Understanding MSTR's position in the market helps contextualize its recent performance against industry standards.
Highs and Lows in Price Movements:
Examining the average weekly, monthly, and quarterly price growth across the Packaged Software Industry, MSTR's performance aligns with the overall industry trends. A notable exception is AECX, experiencing a remarkable 212% weekly price growth, while LGIQ faced the biggest fall at -68%. MSTR's ability to withstand industry fluctuations will be crucial for investors navigating this volatile landscape.
Volume Trends:
In terms of trading volume, MSTR mirrors the industry's negative growth patterns. With an average weekly volume decline of -18%, monthly volume down by -8%, and quarterly volume decreasing by -12%, MSTR faces challenges in maintaining consistent market interest. Investors should closely monitor how the company adapts to changing market dynamics in the coming weeks.
Summary:
In conclusion, while MSTR has displayed promising signs of a positive trend, the recent earnings miss and challenges in market capitalization and volume growth highlight the importance of a comprehensive analysis. Investors must consider both technical indicators and broader industry dynamics when making decisions in this evolving market landscape. As we navigate the intricacies of AI-driven trading, understanding the nuances of individual stock performance becomes paramount for informed decision-making.
Aroon Indicator for MSTR shows an upward move is likely
MSTR's Aroon Indicator triggered a bullish signal on October 28, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 246 similar instances where the Aroon Indicator showed a similar pattern. In of the 246 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for MSTR crossed bullishly above the 50-day moving average on September 26, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSTR advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSTR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MSTR broke above its upper Bollinger Band on October 28, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MSTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.837) is normal, around the industry mean (30.698). P/E Ratio (61.983) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (54.645) is also within normal values, averaging (55.771).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a provider of e-business software and services
Industry PackagedSoftware