Shares of CrowdStrike Holdings (CRWD) fell on Monday and are under good selling pressure. A downgrade by a large company on the seller’s side may be the reason.
We looked at CRWD’s charts on October 26 and wrote that “strategically I would increase stops to $ 275 instead of $ 230 to lock in good gains. Prices may trade sideways for some time before heading towards our target of $ 375. The prices are not moving. a straight line.”
Real money readers should have come out earlier this month when the price dropped to $ 275.
Let’s check the graphics again.
In the updated CRWD daily bar chart, below, we can see that the stocks have moved lower and are trading below the now flat 50 day moving average line. The rising 200 day moving average line is not that far below the market right now and could be tested in the coming days / weeks.
The On-Balance-Volume (OBV) line shows a peak in late August and some smoothness in November. The Moving Average Convergence Divergence Oscillator (MACD) points to the zero line.
In CRWD’s daily points and numbers chart, below, we can see the price drop with the gap closed. Here the software has turned bearish and predicts a potential drop to $ 208.
Result strategy: Real money readers should have stayed flat at CRWD at the start of the month when it fell below our suggested sell threshold of $ 275. I hadn’t expected a sudden breakout but here it is. Avoid the long side of CRWD but I wouldn’t expect a drop to $ 208. Perhaps the August low around $ 225 holds.
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