CrowdStrike Has Pulled BackOne of the main features of the market lately has been a rotation to non-megacap technology names. Zoom Video Communications, Twilio, Roku, Snap, Pinterest, Zendesk, Etsy, Match, Digital Turbine, Appian, Fiverr and others (including solars) have all shot to new highs lately. Meanwhile the biggest names like Amazon.com and Apple have drifted since the Nasdaq-100’s overbought top in early September.
CrowdStrike could be a member of the “new name” club because it only went public in June 2019. The cybersecurity stock rallied along with other software companies between March and September and has been consolidating since.
Four potential patterns are now appearing on its chart.
First, CRWD’s stochastics have dipped to their most oversold levels since March.
Second is the price zone around $130-131. It served as resistance at the top of a bullish triangle September 4-18. CRWD then broke through it and bounced above it on September 24. Prices have now returned to that same area.
Third, CRWD has pulled back to its rising 50-day simple moving average (SMA).
Fourth, momentum has been bearish over the last two weeks. But recent candlesticks show several potential reversal patterns: inside day on October 23, outside day/spinning top on October 26 and another inside day on October 27. Is it trying to stabilize, potentially allowing the longer-term uptrend to continue?
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