In his first Executive Decision segment of Wednesday's "Mad Money" program, Jim Cramer spoke with George Kurtz, co-founder and CEO of CrowdStrike Holdings (CRWD) , a cloud security provider that reported strong fiscal first-quarter earnings last week with 74% annual recurring revenue growth.
Kurtz said cybercriminals are resilient and have latched onto the software-as-a-service trend to offer hackers ransomware-as-a-service. He said these services provide even novice hackers all the tools and techniques they need to deploy and activate attacks on a scale never seen before. They even go as far as taking a percentage of the ransom collected.
Kurtz said CrowdStrike sets itself apart as it uses both artificial intelligence and the power of the crowd to detect attacks and protect against them faster than any other provider.
We looked at the charts of CRWD on June 2 and wrote, "The charts of CRWD have improved from March and they now look ready to charge higher. Traders could go long CRWD ahead of earnings Thursday risking to $195. The $333 area is our price target."
Let's check and see how things are going now.
In this updated daily bar chart of CRWD, below, we can see that the latest earnings numbers did not produce an upside breakout. The numbers also did not precipitate a significant decline, either. CRWD is still trading above the rising 50-day moving average line. The slope of the 200-day line is still positive. The On-Balance-Volume (OBV) line does show some weakness in early June and the Moving Average Convergence Divergence (MACD) oscillator has narrowed toward a potential downside crossover.
In this weekly Japanese candlestick chart of CRWD, below, we can see a bearish engulfing pattern but the following candle is white (so far) and does not confirm the engulfing pattern. The slope of the 40-week moving average line is positive and was tested in early May. The OBV line shows strength in May and the MACD oscillator is narrowing toward a potential bullish crossover.
In this Point and Figure chart of CRWD, below, we used daily close-only price data. Here the software is projecting an upside price target of $300.
Bottom line strategy: The charts of CRWD remain bullish so I continue to recommend holding recent longs risking to $195. Strength above $226 should refresh the uptrend. The price targets are $300 and $333.