For his Executive Decision segment of "Mad Money" last Friday, host Jim Cramer spoke with George Kurtz, co-founder and CEO of CrowdStrike Holdings Inc. (CRWD) , a cybersecurity company that last Thursday posted a bottom-line beat on quarterly results and revenue that nearly doubled the year-ago figure.
Kurtz said security is a basic need for all companies and this is shaping up to be the best competitive environment for CrowdStrike he has ever seen. CrowdStrike is working closely with customers to help protect remote employees during the coronavirus outbreak, as phishing and malware attacks mentioning the coronavirus are on the rise.
Let's check out the charts of CRWD.
In this daily bar chart of CRWD, below, we can see all the trading since the company went public. Prices made an initial rally and then declined into an October/November low. Another rally followed with prices firming into the middle of February. A fresh decline to a new low in March has been followed by a quick rebound last week. Prices are retesting the declining 20-day moving average line. The 50-day moving average line has a negative slope. When we have more price history we will used the 50-day and 200-day moving averages.
The daily On-Balance-Volume (OBV) line has roughly followed the price action but it has made a much higher low in March than in December, thus creating a large bullish divergence. This bullish divergence could mean that prices rally in the weeks ahead. The Moving Average Convergence Divergence (MACD) oscillator in the lower panel shows that it is close to a cover shorts buy signal.
In this daily Point and Figure chart of CRWD, below, we can see a potential upside price target around $90 for CRWD.
Bottom line strategy: We do not have a lot of price history to work with on CRWD, but it currently shows enough positive signals to expect further gains. Risk to $30 if you want to be a buyer.