Shares of CrowdStrike Holdings (CRWD) gapped lower Monday and are under a fair amount of selling pressure. A downgrade by a large sell-side firm may be the reason.
We reviewed the charts of CRWD on Oct. 26 and wrote that "Strategy-wise I would raise stops to $275 from $230 to lock in some good gains. Prices may trade sideways a while before heading towards our $375 target. Prices do not move in a straight line."
Real Money readers should have exited earlier this month when price dipped to $275.
Let's check on the charts again.
In the updated daily bar chart of CRWD, below, we can see that the shares have gapped lower and are trading below the now flat 50-day moving average line. The rising 200-day moving average line is not all that far below the market now and could be tested in the days/weeks ahead.
The On-Balance-Volume (OBV) line shows a peak in late August and some softness into November. The Moving Average Convergence Divergence (MACD) oscillator is pointed down towards the zero line.