Crowdstrike Holdings Testing Support, Whats next?
Hi guys! This is a Technical Analysis on Crowdstrike Holdings (CRWD) on the 1 Week Timeframe.
Since this is a WEEKLY chart, its important to note that the current candle is not yet confirmed and closes end of trading Friday, 08/11/2023
Lets take our attention to the Orange circle highlighting current price action.
We have reached a critical SUPPORT zone.
A place where 2 SUPPORT levels converge
1. BLUE LINE - the 21 W EMA
2. BLACK SUPPORT TRENDLINE - 6 month support trend line
Currently we have "WICKED" or bounced from this convergence of supports.
It is crucial that we close this weeks candle ABOVE this zone.
Critical also to stay above the 21 W EMA, as doing so indicates BULLISH TREND.
Confirming BELOW would indicate BEARISH Trend.
*** If we see confirmation of SUPPORT
-> this can be an ENTRY ZONE for a potential trade/bounce back up.
*** How ever its a little too soon to tell
We are also currently BELOW another TRENDLINE thats labeled "Support turned RESISTANCE".
It be nice to see PRICE get ABOVE this, come end of week.
Notice also the RED CIRCLE that shows our REJECTION from a convergence of RESISTANCE.
Here we have 2:
1. being the ORANGE horizontal resistance line
2. Slanted BLACK LINE
Take a look also at the LARGE UPPER WICK and how multiple candles have LARGE UPPER WICKS.
This indicates SELL PRESSURE and that this area is a tough area to break to the UPSIDE.
It can give off further bearish momentum to the downside.
We also have GOLDEN CROSS of the:
1. 21 EMA
2. 50 SMA
BUt this alone is not enough for the BULLISH CASE.
We need to have price stay ABOVE for it not to be short lived and become a FAKEOUT.
Worst case scenario for now if we CANNOT maintain SUPPORT at our current area.
ANd we end up breaking below 21 EMA & 6 MONTH SUPPORT LINE.
Look to the 50 SMA as a SUPPORT level, it is currently pointed down so where ever it converged with price action at the time if a hypothetical price decline.
If that fails, look to the ORANGE " Previous Resistance Trend from TOP" line. That would actually be a wonderful zone, provided we maintain SUPPORT.
-> This would be another zone to enter POSITIONS for a trade.
Now lets take a look at our Indicators.
1. RSI -> We printed a Lower High, with RSI going BELOW the BLACK Moving Average.
If you look LEFT, there is evidence that when we do this, price tends to drop. So be alert.
2. STOCH RSI is also in the process of printing a BEARISH CROSS. If this happens BEARISH moment will enter, leading to the probability of further price DECLINE.
-> If you look LEFT, everytime we point down, it has coincided with price DECLINES.
3. MACD, with the printing of light GREEN histograms that are small in size, this also is an indication of waning of BULLISH momentum. If we see a CROSS between blue/orange lines where BLUE goes under the ORANGE -> this will lead to an injection of BEARish momentum and further price DECLINES.
CONCLUSION:
CRWD has reached a critical SUPPORT zone, for us to start our descent back to the all time highs we need to maintain SUPPORT here. Some signs point to bullishness where others give off signs of continuation of a DECLINE from our REJECTION zone. But the first thing that needs to get done is confirming SUPPORT above the mentioned zones. Important to see what price action and the indicators do come end of the week.
Stay tuned for more updates on CRWD in the near future.
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. When trading always spend majority of your time on risk management strategy.
Since this is a WEEKLY chart, its important to note that the current candle is not yet confirmed and closes end of trading Friday, 08/11/2023
Lets take our attention to the Orange circle highlighting current price action.
We have reached a critical SUPPORT zone.
A place where 2 SUPPORT levels converge
1. BLUE LINE - the 21 W EMA
2. BLACK SUPPORT TRENDLINE - 6 month support trend line
Currently we have "WICKED" or bounced from this convergence of supports.
It is crucial that we close this weeks candle ABOVE this zone.
Critical also to stay above the 21 W EMA, as doing so indicates BULLISH TREND.
Confirming BELOW would indicate BEARISH Trend.
*** If we see confirmation of SUPPORT
-> this can be an ENTRY ZONE for a potential trade/bounce back up.
*** How ever its a little too soon to tell
We are also currently BELOW another TRENDLINE thats labeled "Support turned RESISTANCE".
It be nice to see PRICE get ABOVE this, come end of week.
Notice also the RED CIRCLE that shows our REJECTION from a convergence of RESISTANCE.
Here we have 2:
1. being the ORANGE horizontal resistance line
2. Slanted BLACK LINE
Take a look also at the LARGE UPPER WICK and how multiple candles have LARGE UPPER WICKS.
This indicates SELL PRESSURE and that this area is a tough area to break to the UPSIDE.
It can give off further bearish momentum to the downside.
We also have GOLDEN CROSS of the:
1. 21 EMA
2. 50 SMA
BUt this alone is not enough for the BULLISH CASE.
We need to have price stay ABOVE for it not to be short lived and become a FAKEOUT.
Worst case scenario for now if we CANNOT maintain SUPPORT at our current area.
ANd we end up breaking below 21 EMA & 6 MONTH SUPPORT LINE.
Look to the 50 SMA as a SUPPORT level, it is currently pointed down so where ever it converged with price action at the time if a hypothetical price decline.
If that fails, look to the ORANGE " Previous Resistance Trend from TOP" line. That would actually be a wonderful zone, provided we maintain SUPPORT.
-> This would be another zone to enter POSITIONS for a trade.
Now lets take a look at our Indicators.
1. RSI -> We printed a Lower High, with RSI going BELOW the BLACK Moving Average.
If you look LEFT, there is evidence that when we do this, price tends to drop. So be alert.
2. STOCH RSI is also in the process of printing a BEARISH CROSS. If this happens BEARISH moment will enter, leading to the probability of further price DECLINE.
-> If you look LEFT, everytime we point down, it has coincided with price DECLINES.
3. MACD, with the printing of light GREEN histograms that are small in size, this also is an indication of waning of BULLISH momentum. If we see a CROSS between blue/orange lines where BLUE goes under the ORANGE -> this will lead to an injection of BEARish momentum and further price DECLINES.
CONCLUSION:
CRWD has reached a critical SUPPORT zone, for us to start our descent back to the all time highs we need to maintain SUPPORT here. Some signs point to bullishness where others give off signs of continuation of a DECLINE from our REJECTION zone. But the first thing that needs to get done is confirming SUPPORT above the mentioned zones. Important to see what price action and the indicators do come end of the week.
Stay tuned for more updates on CRWD in the near future.
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. When trading always spend majority of your time on risk management strategy.
Comment:
Update on CRWD on 1 week.
Notice how after Breaking out of Bullish Rectangle, price has continued UP.
We had 4 weeks of testing Support on the Upper Border of the Rectangle.
This gave us enough momentum to break past 2 resistance trendlines.
My target is roughly the $200 level.
I think we will be rejected to come back down to test the Resistance levels.
As Volume doesnt seem like its there. I would of expected larger volume to come in after Rectangle Pattern breakout.
Taking positions after that rejection pullback would be a solid play.
Pay attention to Volume, if we get a steady rise of volume. Thatll be enough to continue our push to $200.
Indicators are supporting a continual move.
MACD has had steady size increase of Histobars. Indicative of increasing Bullish momentum. As long as we see this pattern of increasing size we are good.
STOCH RSI is also Crossed Bullish.
We will continue UPtrend until proven otherwise.
For STOCH RSI that would be a Bearish Cross and it piercing the 80 level downwards.
MACD would be decrease in size, print of Light green bars, then a Bearish cross followed by print of Red bars.
Diminishing volume would also clue in on uptrend ending.
Update on CRWD on 1 week.
Notice how after Breaking out of Bullish Rectangle, price has continued UP.
We had 4 weeks of testing Support on the Upper Border of the Rectangle.
This gave us enough momentum to break past 2 resistance trendlines.
My target is roughly the $200 level.
I think we will be rejected to come back down to test the Resistance levels.
As Volume doesnt seem like its there. I would of expected larger volume to come in after Rectangle Pattern breakout.
Taking positions after that rejection pullback would be a solid play.
Pay attention to Volume, if we get a steady rise of volume. Thatll be enough to continue our push to $200.
Indicators are supporting a continual move.
MACD has had steady size increase of Histobars. Indicative of increasing Bullish momentum. As long as we see this pattern of increasing size we are good.
STOCH RSI is also Crossed Bullish.
We will continue UPtrend until proven otherwise.
For STOCH RSI that would be a Bearish Cross and it piercing the 80 level downwards.
MACD would be decrease in size, print of Light green bars, then a Bearish cross followed by print of Red bars.
Diminishing volume would also clue in on uptrend ending.
Showing signs of a continuation of bullish trend.
We are breaking out of a Bullish Rectangle pattern. Watch the Top of the rectangle to test as SUPPORT.