CRWD - large dump was foretold
Monday 8th or July (as indicated on the chart), there was nothing that Crowdstrike as a company could do wrong. The stock had rallied to new all time highs in the market. Little did anyone know that 11 days later they would cause the largest IT outage ever and their share price was about to get crushed. Or did they?
Im arguing here it was all the charts on 8th July due to hidden BEARISH DIVERGENCES. A whole 11 days before the event.
Let me explain. Crowdstrike had already had Bearish divergences on the RSI. This is evidenced by the stock price putting in higher highs and higher lows, whilst the RSI (bottom section) was putting in lower highs and lower lows. There harsh rejection at the white line 11 days before it’s black swan event. That was the exact it time to get out because the price was overdue a correction having gone on a long parabolic run.
So what to do now? Just look at how oversold were are on the RSI. Can a black swan event an opportunity? I’d certainly say so with this company, such is their importance, but they have caused a complete shift in the trend of its stock performance and thus we need to see a sign of strength now in the charts.
If you’re planning to trade it, play it safe, wait for a change in market structure before going long. The trend remains down for now but this is too late to short in my opinion. Im expecting a counter trend rally as the dust settler.
Keep an eye on this one, it’s volatility makes it a good instrument to trade.
Not financial advice, just telling you what I’m looking at for a potential trade. I certainly don’t recommend being a hero trying to catch a falling knife either. I’m waiting for key levels to be hit and reactions to suggest that the market structure has changed. . I’m always keeping a stop loss, entry and exit plans. Defining my risk, above all preserving my capital.
If you fail to plan, you are planning to fail.
Im arguing here it was all the charts on 8th July due to hidden BEARISH DIVERGENCES. A whole 11 days before the event.
Let me explain. Crowdstrike had already had Bearish divergences on the RSI. This is evidenced by the stock price putting in higher highs and higher lows, whilst the RSI (bottom section) was putting in lower highs and lower lows. There harsh rejection at the white line 11 days before it’s black swan event. That was the exact it time to get out because the price was overdue a correction having gone on a long parabolic run.
So what to do now? Just look at how oversold were are on the RSI. Can a black swan event an opportunity? I’d certainly say so with this company, such is their importance, but they have caused a complete shift in the trend of its stock performance and thus we need to see a sign of strength now in the charts.
If you’re planning to trade it, play it safe, wait for a change in market structure before going long. The trend remains down for now but this is too late to short in my opinion. Im expecting a counter trend rally as the dust settler.
Keep an eye on this one, it’s volatility makes it a good instrument to trade.
Not financial advice, just telling you what I’m looking at for a potential trade. I certainly don’t recommend being a hero trying to catch a falling knife either. I’m waiting for key levels to be hit and reactions to suggest that the market structure has changed. . I’m always keeping a stop loss, entry and exit plans. Defining my risk, above all preserving my capital.
If you fail to plan, you are planning to fail.
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