• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock CrowdStrike’s Epic Fail: Here are the Critical Trading Levels to Watch Now!
Stock

CrowdStrike’s Epic Fail: Here are the Critical Trading Levels to Watch Now!

by July 23, 2024
by July 23, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Almost everyone felt the ground shake on July 19 when security vendor CrowdStrike (CRWD) initiated a faulty software update that caused a Windows systems failure worldwide, and millions of screens displaying the infamous blue screen of death (a.k.a. BSOD). Crowdstrike’s stock price fell 11% on Friday and dropped further by over 13% on Monday.

I was supposed to check in for a United Airlines flight the day following the incident when I suddenly received an alert that my flight had been canceled. It took only a second to learn that CrowdStrike was responsible for the mess.

Preparing for a Crowdstrike News Trade

If you’ve been watching the market, you might have guessed that CRWD would take a hit while its rival, Palo Alto Networks (PANW), got a boost. CRWD, the second-largest cybersecurity company in the US, had decent fundamentals. But, the big question is how it will handle the looming customer lawsuits.

If you’re bullish on CRWD and think it will recover from its debacle (which isn’t over, btw), its recent drop presents a prime buying opportunity. Let’s assume this is what you’re looking for. Here are the key levels to watch.

CrowdStrike: Key Levels to Watch

Looking at CrowdStrike’s daily chart, you can see that before the July 19 slip-up, CRWD was already overextended (check the black dotted lines). This was evident in the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF).

CHART 1. DAILY CHART OF CROWDSTRIKE. CRWD has entered a buy zone, but watch out for momentum (and watch the news).

Although this is an important “technical” indication, you’ll want to keep an eye on it, because it will be compounded by even more negative media coverage (as in stories of ongoing failures, commercial impact, potential lawsuits, etc.). 

As long as you keep that in your sights, take a look at the Fibonacci Retracement levels (in blue) and the support/prior resistance lines (green dotted lines). Buyers jumped in at $245 where the 50% Fib and upper support lines converged. Should the price continue to slump, the range between $245 and $207, where the 61.8% Fib line and second support level converge, serves as a strong buying point.

The Ichimoku Cloud not only gives you a picture of the projected uptrend (should it continue) but also a range for potential support on the higher end of the price action. If the price falls below $207, you will have to reassess the technical, fundamental, and news-driven context.

The Close

While CRWD, the second-largest US cybersecurity company, faces challenges and potential lawsuits, its recent stock dip might be a buying opportunity for the optimistic. Keep an eye on momentum, the buying levels, and the news updates. Things can get a lot better or a lot worse for the company in the weeks to follow.

P.S. Grayson Roze’s ChartWatchers Post on CrowdStrike

CHART 2. GRAYSON ROZE’S TAKE ON CROWDSTRIKE’S PRICE ACTION.

Grayson Roze is eyeing the chart and thinking, “Is this a massively bullish moment for CRWD?” The stock just bounced off prior resistance-turned-support and its 200-day MA in a longer-term uptrend. If this bottom holds, we could see a bullish formation. CrowdStrike’s recent chaos, taking half the internet offline, shows its critical role like Amazon or Google. Roze uses the Traffic Light indicator on ACP, marking bullish, bearish, and neutral zones, to set thresholds based on his analysis.

You check out his chart here.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Some Trading Pairs to Think About Right Now
  • Two EASY Ways to Find the Strongest Stocks in Seconds
  • The Best Technical Indicator for Long-Term Investors
  • Week Ahead: NIFTY Prone To Consolidation At Higher Levels; Stay Selective and Protect Profits
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Trump says he ‘would be willing to do more than one debate’ with Vice President Harris
next post
Allies urge Trump to minimize DEI attacks, focus on Harris’ ‘terrible’ record: ‘Wrong hole to go down’

You may also like

Wage Inflation: The Stats and the Underlying Implications

September 20, 2023

Choppy Markets Require Patience

March 30, 2023

Blow-Off Top?! Market Reacts to the FED Announcement

December 14, 2023

Gold is Making Waves within a Long-Term Uptrend

January 31, 2024

STRONG Indicators for 2024!

December 30, 2023

What’s Next for QQQ: Super Bullish to Super Bearish

July 1, 2023

Pullback Finding Support

March 4, 2023

S&P 500 Earnings 2024 Q3: Still Overvalued

January 10, 2025

S&P 500 Turnaround: 3 Charts You Need To Watch

September 26, 2023

Broad-Based Rally Puts Markets in Bullish Position

June 2, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,309 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    One Potentially Big Problem Is Lurking...

    May 19, 2024

    Market Internals Point to Large Growth...

    January 23, 2025

    When These Levels Break, The S&P...

    March 27, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here