CrowdStrike Forward of Earnings: Strike Now or Keep away from the Crowd?

Cybersecurity agency CrowdStrike Holdings  (CRWD) is scheduled to report their newest quarterly numbers to shareholders after the shut of buying and selling Tuesday. In our Might 31 overview of CRWD we wrote that merchants may “…danger to $142. $200 and $235 are our potential value targets within the weeks forward.”

CRWD reached our $200 value goal in August however then turned decrease once more. Hopefully merchants took earnings and prevented the following decline.

Let’s examine the charts once more.

Within the up to date each day bar chart of CRWD, beneath, we are able to see that the shares have trended decrease the previous 12 months. Costs are buying and selling beneath the declining 50-day transferring common line and beneath the bearish 200-day transferring common line.

The On-Stability-Quantity (OBV) line has been in a downdraft the previous three months telling us that sellers of CRWD have been extra aggressive than patrons. The Transferring Common Convergence Divergence (MACD) oscillator has been in bearish territory since early September.

Within the weekly Japanese candlestick chart of CRWD, beneath, we see a longer-term bearish image. The shares are in a downtrend as they commerce beneath the bearish 40-week transferring common line.

Buying and selling quantity is impartial and the weekly OBV line is flat. The MACD oscillator has been in bearish territory all yr.

On this each day Level and Determine chart of CRWD, beneath, we are able to see a possible draw back value goal within the $78 space.

On this weekly Level and Determine chart of CRWD, beneath, we are able to see that costs have reached a draw back value goal within the $90 space.

Backside-line technique: I’ve no particular information of what the highest brass at CRWD will inform shareholders and analysts Tuesday night however the charts seem like pointed decrease. A brief bounce can’t be dominated out however with no base sample I don’t anticipate a sustained rally. Keep away from the lengthy facet of CRWD for now.