My Watchlist [124]: CRWD... Crowded Trade?

Hi everyone. Today I’ll be covering one of Palo Alto Network’s main competitors in the cybersecurity space:

CrowdStrike Holdings, Inc. (NASDAQ: CRWD)

CRWD is currently trading in an ascending channel (in green) with higher highs and lows. In recent times, we saw a markup in trend (in blue) with a tighter ascending channel forming as we headed back to retest the top of the channel.

CRWD is retesting channel support for the first time since Oct’23, on the back of the 2024 CrowdStrike Incident where worldwide systems crashed due to a faulty security update issued by the company. CRWD also retested an area that was previously resistance in late-2021 (prior ATHs at 298.48) and held that level.

Stochastics have effectively been reset with a reading at the extreme oversold end (0, 3), while RSI is also hitting extreme oversold levels.

Based on CRWD’s current closing price, it has to hold above 298.48 and within the blue ascending channel, otherwise we should see a breakdown and move towards 274.98-281.51 support (and lower). Holding current levels should lead to a move back towards the bearish gap at 308.50-336.34 (and higher). Should bulls have the strength to hold current levels, I see a possibility of a higher high into the 1.618 Fib extension at 463.20 by end of the year, or next year.

Despite the relative oversold nature of the daily oscillators and the potential local bottom that may have been formed, I do think caution is warranted. A structural breakdown presents a clear short opportunity, while holding above 298.48 should see a larger move up towards 463.20 in the longer term. Consequently, I am initiating coverage on CRWD with a HOLD sentiment instead.

Sentiment: HOLD (New)

Summary (with Price Targets - NFA):

Trading in a large ascending channel (green) and a secondary markup ascending channel (in blue)
Holding above 298.48 presents a long-term buy opportunity at a local bottom for a move towards the 1.618 Fib extension at 463.20
Breakdown below the secondary channel and 298.48 should see a retracement towards the 274.98-281.51 area

@TigerWire @TigerStars @TigerEvents @CaptainTiger @MillionaireTiger

$CrowdStrike Holdings, Inc.(CRWD)$ $iShares Expanded Tech-Software Sector ETF(IGV)$ $Palo Alto Networks(PANW)$ $SentinelOne, Inc(S)$ $Fortinet(FTNT)$

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My Watchlist [124]: CRWD... Crowded Trade?

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