Shares of cybersecurity firm CrowdStrike Holdings ( CRWD) are trading higher Monday. Prices are now back above the 50-day moving average line and the question is whether this strength can continue.
Let's check the charts.
In this daily bar chart of CRWD, below, I can see that the price of CRWD was cut in half from August to January. Prices started a rally into early April and then pulled back in the past two weeks or so. With prices rallying today, I get the sense we are seeing a higher low being made.
A close above the April highs will establish a new uptrend -- higher lows and higher highs. The daily On-Balance-Volume (OBV) line has been improving from its January/February lows. A rising OBV line is a good sign that buyers are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator was slightly below the zero line, but it is now crossing back above it for a new buy signal.
In this weekly Japanese candlestick chart of CRWD, below, I can see some positive clues. Prices are still in a longer-term downward trend as CRWD trades below the declining 40-week moving average line.
CRWD has made a major correction in price over the past two years. The weekly OBV line has been steady the past two years. The MACD oscillator has improved since the beginning of the year but is still below the zero line. The two most recent candles could be two-thirds of a bottom reversal pattern. A white candle this week should complete the pattern.
In this daily Point and Figure chart of CRWD, below, I can see a potential upside price target in the $161 area.
In this weekly Point and Figure chart of CRWD, below, I can see a potential downside price target in the $93 area. A trade at $139.38 should turn this chart bullish.
Bottom line strategy: While Monday's trading volume could be stronger, I like the rally. Strength above $140.77 could precipitate further gains. Trade CRWD from the long side.
