The charts of CrowdStrike ( CRWD) are weak looking so we want to check them out ahead of earnings set for release after the close on Wednesday.
In this daily bar chart of CRWD, below, we can see that prices have declined this month to break below the cresting 200-day moving average line. The slope of the shorter 50-day moving average line has turned negative. Prices have bounced slightly in recent days but have failed at the underside of the 200-day line.
The On-Balance-Volume (OBV) line has been weak the past three months as sellers of CRWD have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bearish as it has moved below the zero line.
In this weekly Japanese candlestick chart of CRWD, below, we see a mixed picture. Prices have closed below the 40-week moving average line but a lower shadow tells us that traders have rejected the lows.
The weekly OBV line looks like it has drifted lower from August. The MACD oscillator has been weak since February.
In this daily Point and Figure chart of CRWD, below, we can see a potential downside price target in the $197 area.
Bottom line strategy: In our November 15 review of CRWD we wrote, "Avoid the long side of CRWD but I would not expect a decline to $208. Maybe the August low around $225 holds." It does not look like $225 will hold now so be prepared for further weakness in the weeks ahead.
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A minor pullback would not be surprising in AFRM; here's what the charts say about the recent strength and where to buy.
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