Here’s your trade idea on CrowdStrike ($CRWD) – July 23, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to talk about everybody’s not-so-favorite cybersecurity firm, CrowdStrike ( NASDAQ: CRWD ).
Before the implosion, this stock was in a really, really nice volatility squeeze. It was looking like it was ready to blow out to the upside. You can see how tight these Bollinger Bands became because this was drifting sideways for so many days, and then boom, this happens.
We got two massive days of selling. Today we got a little bit of, I guess you could say, some buying, certainly some buying that came in because it closed higher than the open. It closed higher than yesterday’s close but not by much, 1.2 percent up. And so I don’t think this is close to being a slam play buy, Oh the stock’s gone down too much, I’ve got to buy this stock now.
At some point, it’s going to rebound, but I think frankly, if you want to play that game then you should look at today’s intraday high of 277.00 and your entry should be just above there. I’m not recommending this trade because I hate this company, I actually think it has further to go ultimately.
The reason is not because I hate this company, but because the outage that this thing caused was so widespread that these big companies that are using Crowdstrike ( NASDAQ: CRWD ). They may continue to use it, we have a CRM, I won’t say what the name of the company is, but we have a CRM that we absolutely hate, but it’s such a pain in the butt to change, that hating it is more cost-efficient than leaving it.
The point is, with customers of CrowdStrike ( NASDAQ: CRWD ), I think you are going to see some hesitancy in these companies buying their next product because that’s how companies grow, they keep offering new things. I think there’s going to be a little hesitancy, and a little reticence in the future, that’s going to impact their growth.
My suggestion is to watch this stock. They don’t report earnings until September so there’s going to be no positive catalyst there. And by the way, I think earnings are going to be a real hoot. So just stay away from this.
If you’re bullish, wait until it breaks through 277.00. If you’re bearish, wait until it breaks through 258.77. You would probably have a hard time getting a borrow if you’re looking to short this stock, and it’s not a stock that you should be shorting anyway.
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