Crowdstrike still trying to breakoutCrowdStrike ( CRWD ) made a ~50% retracement off highs after last quarterly earnings reported declining sales acceleration and mediocre guidance. Sales is still up 84% YoY, which is awesome, but has steadily decelerated since Oct 2018 when it was up 149%.
After the retracement, the stock climbed back up to make a new high before falling back once again to the same support area at the 50% retracement .
A double-bottom formed, but the pivot (middle high) was not confirmed by higher volume . However, you could look at the previous all-time high as a new pivot and look for volume to confirm. It would likely come after a better-than-expected earnings result (with hopefully an acceleration in sales).
The 10d ATR (x2.7) stop is at 10.55%, but I'd use a tighter technical stop at the previous pivot of 144.29. The tight stop is more likely to fail, but if it falls back to that point its better to cut losses short as something is wrong. But the tighter stop lets you use a position size of R16.03. Adjust R based on your confidence level, how much you are willing to lose when the crowd strikes back (sorry).
Buy Point: 153.90
Stop Loss: 144.29 (6.24%)
Position Size: R16.03
45C trade ideas
CRWD potential breakout Be disciplined, only buy the breakout.
I may only do day trades on this one this week.
Buy the breakout, watch it closely, take profits when it reverses, repeat.
I wont hold into earnings which is this Friday, if it pans out as a swing trade, I would sell the weekly's on Thursday.
I may not enter this position at all, depends on the weekly call option prices on Monday.
Trade Update: Move stop to breakevenIngenuity Trading Model- Swing Trading Algorithm used in all markets- Stocks, Forex, Futures, and Crypto
The model is a Geometric Markov Model :
In probability theory, a Markov model is a stochastic model used to predict randomly changing systems. Markov Models are used in all aspects of life from Google search to daily weather forecast. The randomly changing systems we focus on are the equity, futures, and forex markets. The geometric element of the model is the fractal wave structure you can find on any chart you look at across any market and across all time dimensions.
Our model focuses on the current wave formation (current state)- geometric price formation along with its volume and volatility over a given time period and using that information to predict the future state- future price movement. For more information visit our website
$CRWDTLDR: Short term bearish (dip buy opportunity) long term bullish .
Short term I see this hitting $114 as it looks like triple descending peak, Should find support at the bottom of the trend line and bounce. ultimately I am bullish as it looks to be bull flagging.
(Not trading advice, for personal reference use with discretion)
ABC BullishPattern valid at LE (Long entry) level with a confirmed uptrend
CRWD is over LE level but pulled back significantly on Friday
Possible T2 195 to 216/long term targets and perhaps focus on T1 for now
Possible stop under C or 118
Look at the last weekly candle. It is long with confirmed support at 118ish
No rising wedges in the yearly chart
Just an observation
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?
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.