Looking at your calendar of who will be reporting earnings this week? Wednesday brings results from CrowdStrike Holdings (CRWD) , the cybersecurity stock that's in high demand as cyber-attacks ramp up.
We took a look at CRWD on Feb. 25, writing that "Aggressive traders could use available intraday weakness to go long CRWD. Risk to $165. On the upside, CRWD could rebound to $218 and then the $230+ area in the next few weeks."
CRWD rebounded above $200 but Monday's decline is making us nervous as our stop was almost reached. so let's check the charts again.
In the daily bar chart of CRWD, below, we can see that prices have been more volatile in recent weeks and sometimes this kind of price action can be indicative of prices bottoming. CRWD is trading back below the 50-day moving average line after rallying above it.
The trading volume appears to be more active the past three months and the On-Balance-Volume (OBV) line shows a rise the past two months suggesting that buyers of CRWD are being more aggressive. The 12-day price momentum study shows higher lows from December to January to February, which tells us that the pace of the decline has slowed. A downtrend slows because farsighted investors have stepped in to be buyers.