I reviewed the charts of Crowdstrike Holdings (CRWD) on May 8 and wrote, "While Monday's trading volume could be stronger, I like the rally. Strength above $140.77 could precipitate further gains. Trade CRWD from the long side."
With CrowdStrike set to report its first-quarter numbers after the close here on Wednesday, let's check the position of the charts and indicators again.
In this daily bar chart of CRWD, below, I can see that CRWD has moved up strongly this month. Prices are trading above the rising 50-day moving average line and above the still-declining 200-day line. Trading volume looks like it has improved a little in May and the On-Balance-Volume (OBV) shows a rise. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CRWD, below, I see a very small spinning top or close to a doji pattern as the most recent weekly candle pattern. A doji can be a reversal pattern and it happens when the close and open are the same or nearly the same. This represents a balance between bulls and bears. If CRWD was in balance last week it makes this week's price movement critical. A move lower this week would create a top reversal pattern. Prices are above the declining 40-week moving average line. The weekly OBV line shows gains from the beginning of the year and supports the price gains. The MACD oscillator is now crossing the zero line for an outright buy signal.
In this daily Point and Figure chart of CRWD, below, I can see an upside price target in the $173 area.
In this weekly Point and Figure chart of CRWD, below, I can see a potential price target in the $248 area.
Bottom line strategy: The four charts above are like a battle between the East (candlesticks) and the West (bar charts and Point and Figure). Western technical tools are bullish while the Eastern technique of candlesticks suggests caution. I don't know what CRWD is going to tell its shareholders this evening, but I would suggest taking partial profits on longs.
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