CRWD closes below its opening price unable to hold early session gains
CrowdStrike Holdings Inc. (CRWD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CRWD finished Wednesday at 131.15 losing $0.30 (-0.23%), but still slightly outperforming the S&P 500 (-0.46%). Trading $1.84 higher after the open, CrowdStrike was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 10th, CRWD lost -2.37% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CRWD as at Sep 16, 2020):
Wednesday's trading range has been $4.32 (3.27%), that's below the last trading month's daily average range of $7.48. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for CRWD. Prices continued to consolidate within a tight trading range between 122.85 and 134.05 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 134.05 (R1).
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 134.05 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for CrowdStrike. Out of 82 times, CRWD closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.32% with an average market move of 2.11%.