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6 months ago
CrowdStrike / $CRWD Turns Bullish.
Recent developments in the Middle East have once again drawn our attention to the Cyber security sector. Having had a successful IPO in June, CrowdStrike (NASDAQ: CRWD) rallied 80% in 2 months to reach the $101 region before the entire sector fell out of favour and sold off heavily to a low of $45. Controversy has also contributed as the POTUS made particular care to mention it publicly regarding the scandal in Ukraine, to compound the trouble earnings were also seen as a disappointment to investors and analysts.
Rumors and the Options markets are hinting that a rally is on the cards, so lets take a look at the technicals on the CRWD charts (below) to see if we can find some hints towards direction and scale of the next move.
The Daily Chart has some Notable Bullish Signals to consider.
- RSI is in a strong uptrend and front running the stock.
- MACD has had a bullish cross and in reversal.
- Histogram bullish and ticking higher.
- The stock has managed to make a higher low, which breaks the trend.
- Price has closed above the middle Bollinger band.
- Bollinger’s are pinching closed signalling a significant move imminent.
- Volume has spiked considerably.
- Reclaimed 7&12 moving averages as support.
The 30-Min Chart had a Very Interesting Close on Friday.
CRWD formed a beautiful Flag pattern, which is extremely bullish and will place the stock on watch lists globally, as many investors and traders start to prepare for Monday. A significant break up from this pattern could ignite a significant move.
Targets to consider:
Short term $55 – to the Fibonacci golden pocket.
Medium Term $58 – to the overall .236 Fib retrace level.
Longer term $66 – to a confluence of Fibonacci expansion and retrace levels.
A breakout and up from the flag could be a good signal to possibly accumulate but any break will more than likely be back tested so no need to jump in to early.