CRWD is currently retesting a key support area between ($90.94 - $102.08) for the second time since its last touch back on June, July, and August 2020. This touch /bounce of support is also in confluence with a 3rd touch of the support area within a massive falling wedge that began to form after CRWD reached all time highs November 2021. In addition to this information, CRWD is also forming a smaller falling wedge on the lower time frames adding more confirmation to a bounce from this area. On the monthly chart, CRWD is creating smaller monthly candles with volume showing a decline along with these decreasing in size. Note: There are two GAPs on the daily to be filled. One between ($99.78 - $102.54) and the other between ($125.52 - $136.31).
Trade Idea:
For an early ENTRY wait for a break and hold of the current resistance area between ($98.70 - $100.63) after the break of $99.78. TARGET the next resistance area between ($108.94 - $112.07).
For a safer entry with added confirmation of a trend change. First allow the break of the resistance area between ($98.70 - $100.63) then wait for a retest/reject of the next swing high around $107.44 - 108.46 or maybe even the next resistance area between ($108.94 - $112.07). After this reject allow for CRWD’s price action to make its way back down to retest the previous resistance area to ensure that it has turned into support and wait confirmation to enter.
Being that this is analysis applies to the Daily, Weekly, and Monthly charts, this setup could be used to make short term swing trades or long term LEAPs, depending on your chosen targets.
Me personally, I would make short term trades on the way up but my ultimate target is CRWD making its way back up to the resistance line/zone of the larger falling wedge, maybe even filling the big GAP zone between ($125.52 - $136.31)
Wherever you choose to enter, please manage risk accordingly and choose your stop loss wisely.
For an early ENTRY wait for a break and hold of the current resistance area between ($98.70 - $100.63) after the break of $99.78. TARGET the next resistance area between ($108.94 - $112.07).
For a safer entry with added confirmation of a trend change. First allow the break of the resistance area between ($98.70 - $100.63) then wait for a retest/reject of the next swing high around $107.44 - 108.46 or maybe even the next resistance area between ($108.94 - $112.07). After this reject allow for CRWD’s price action to make its way back down to retest the previous resistance area to ensure that it has turned into support and wait confirmation to enter.
Being that this is analysis applies to the Daily, Weekly, and Monthly charts, this setup could be used to make short term swing trades or long term LEAPs, depending on your chosen targets.
Me personally, I would make short term trades on the way up but my ultimate target is CRWD making its way back up to the resistance line/zone of the larger falling wedge, maybe even filling the big GAP zone between ($125.52 - $136.31)
Wherever you choose to enter, please manage risk accordingly and choose your stop loss wisely.
Dennis Butler Jr.