Strategy Inc. Stock Tests Key Trendline, Eyes $163 Support Zone Next

Strategy Inc. shares fell 1.8% to $264.67 after breaching a trendline that has held since early 2024.

Technical analysis suggests that $163.52 represents the next potential retracement, based on the 0.886 Fibonacci level.

The market volume of 11.07M indicates active trading interest, despite broader weakness across Nasdaq-listed technology stocks.

Shares of MicroStrategy Inc. (NASDAQ: MSTR) declined 1.8% on November 4, closing at $264.67 after failing to maintain its ascending support trendline. The latest trading session showed weakening momentum, with price action now positioned below the multi-year diagonal trend that has guided recovery phases since 2024.

The daily chart from TradingView shows that the stock reached an intraday high of $270.36 and a low of $259.85 before closing near the midpoint of the session. The breakdown below the trendline indicates that sellers have regained short-term control, potentially introducing a larger correction toward lower support zones.

Technical Setup and Price Structure

The red ascending trendline, visible on the one-day chart, marked a long-term structural base that supported multiple rebounds in the past. Since early 2024, the stock has consistently maintained this trajectory until the latest breach, suggesting that market sentiment has shifted from consolidation to renewed selling pressure.

The projection arrow on the chart points to the 0.886 Fibonacci retracement level, placed near $163.52, as the next technical area of interest. Historically, this zone has provided substantial support during extended corrective phases following steep rallies.

Volume data reveals a total of 11.07 million shares traded during the session, slightly above the 9-day average of 11.01 million, confirming heightened participation as the price nears major inflection levels. Sustained trading activity near support could determine whether the breakdown develops into a prolonged decline or stabilizes before a rebound attempt.

Market Context and Potential Scenarios

The broader structure of Strategy Inc.’s chart reflects a transition phase after the stock reached multiple peaks above the $700 range. Since then, successive lower highs and fading volume momentum have suggested a shift toward profit-taking and technical rebalancing.

Analysts view the breach below the rising trendline as a possible continuation of the mid-term correction that began earlier in 2025. Should the price continue to trade below $280, the probability of testing the $163 area will strengthen, aligning with typical Fibonacci-based retracement sequences.

For traders, the focus now turns to whether buying interest emerges near this deep retracement zone. The 0.886 level often acts as the final corrective stage before cyclical accumulation begins. However, confirmation will depend on sustained closes above the broken trendline in upcoming sessions.

Volume Dynamics and Key Observation

Recent volume spikes suggest that market participants remain active despite the current bearish setup. This reflects a possible phase of distribution, where institutional activity increases during transitional periods between bullish and bearish cycles.

In past cycles, similar setups preceded extended consolidation phases before major reversals took shape. The next critical observation period will be the approach toward $163.52, a level aligned with prior demand zones visible in historical data.

The technical alignment raises an important question for investors: Can Strategy Inc. find strong support near $163 before reversing its long-term decline?

With current volume holding steady and price patterns reflecting a textbook retracement, traders will be closely monitoring whether Strategy Inc.’s structure stabilizes above or below the key Fibonacci level in the coming weeks.