• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

CrowdStrike: Strike While the Cybersecurity Iron Is Hot?

CRWD is getting a lot of attention as the risk of global threats ramp up.
By BRUCE KAMICH
Feb 25, 2022 | 08:26 AM EST
Stocks quotes in this article: CRWD

With the threats of cyberattacks from Russia looming, Jim Cramer spoke with George Kurtz, co-founder and CEO of CrowdStrike Holdings (CRWD)  in his second Executive Decision segment of Thursday's Mad Money program.

The cybersecurity company saw its shares rally strongly Thursday as American companies responded to President Biden's warnings.

Kurtz said that cyber attacks are now a critical element of modern warfare, and since most of our digital infrastructure is privately owned, everyone needs to be ready for what might come.

CrowdStrike helps secure 14 top 20 banks, Kurtz said, but the executives he's spoken to are concerned about what Russia might unleash in retaliation for sanctions against them. So-called "wiper" attacks are now becoming common where attackers just wipe systems clean. Companies affected by these attacks suddenly find that everything is gone and nothing works, including computers, phones, key cards and more.

When asked about our electric grid, Kurtz noted that for decades the philosophy was "if it ain't broke, don't fix it," but now utilities find themselves with older technology that's very hard to upgrade.

Let's check out the charts and indicators for any malware or better yet uptrends.

In our Jan. 11 review we wrote that "CRWD is still in a downtrend but we are seeing some positive clues. CRWD needs to make a higher low and a higher high to turn the trend positive. Until we see this kind of price movement unfold I would prefer to stand aside."

In the daily bar chart of CRWD, below, we can see the shares remained weak into late January and then bounced and made a retest of the January nadir. Thursday's price action is a large outside day and higher close -- something futures traders pay a lot of attention to. Prices rallied to the underside of the declining 50-day moving average line, which is good, but we need to see a close above the February highs to know that a rally is underway.

The On-Balance-Volume (OBV) line shows some uneven improvement from late December. The Moving Average Convergence Divergence (MACD) oscillator has made a higher low from December to January for a bullish divergence when compared to the price action. Crossing above the zero line will be a new buy signal when it occurs.

In the weekly Japanese candlestick chart of CRWD, below, we can see that the last two candles comprise a bullish engulfing pattern. Prices are still well below the declining 40-week moving average line but we know this is a lagging indicator.

The OBV line shows some slight improvement from January and the MACD oscillator has begun to narrow telling us that the power of the downtrend is waning.

In this daily Point and Figure chart of CRWD, below, we can see a potential downside price target in the $135 area. A rally to $192 is needed to restart an uptrend.

In this weekly Point and Figure chart of CRWD, below, we used close only price data. Here the software suggests we could see a rally to the $218 area.

Bottom-line strategy: 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.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Terrorism | Cybersecurity | Software & Services | Technology | Mad Money | Executive Interview

More from Stocks

On Surface Market Appeared Quiet, but Underneath Fireworks Sparked

James "Rev Shark" DePorre
Aug 16, 2022 4:37 PM EDT

Short-squeezes, stock rotations and parabolic S&P moves rocked the day.

You Bet Your BP I'd Be a Buyer

Mark Sebastian
Aug 16, 2022 2:32 PM EDT

With oil down over the last two days, BP's stock has held up.

Doug Kass: We May Now Be Approaching Another Important Top in the Market

Doug Kass
Aug 16, 2022 1:30 PM EDT

To justify buying at today's prices means that one expects a new Bull Market leg - something I remain dubious of.

Cisco, Long a Steady Tech Stock, Is Under the Microscope Ahead of Earnings

Brad Ginesin
Aug 16, 2022 12:45 PM EDT

Some top analysts are flashing a yellow light on the network equipment maker ahead of its quarterly report and amid tightening competition. But is caution really warranted for long-term investors?

This Market Needs Some Corrective Action

James "Rev Shark" DePorre
Aug 16, 2022 11:18 AM EDT

It's likely to occur on a rolling basis and won't be that evident in the senior indexes.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login