CrowdStrike Stock: Price Levels to Watch as Earnings Report Following Outage Looms
CrowdStrike shares (CRWD) are in the spotlight this week, with the cybersecurity giant set to disclose its fiscal 2025 second-quarter results after the closing bell on Wednesday. Investors will have particular interest in the report, given it’s the first opportunity to assess the financial impact of an erroneous software update carried out by the company that caused a global IT outage last month.
Despite the stock selling off sharply after the incident, it has recovered 35% from its recent August low amid growing consensus among analysts that the impact of the outage may be limited and already priced into the shares.
Below, we look over the technicals on CrowdStrike’s weekly chart and point out crucial price levels to watch as the cybersecurity giant prepares to release its quarterly report.
Bullish Piercing Pattern Shifts Momentum
Since undergoing a strong intraday reversal from the 200-week moving average (MA) to complete a piercing pattern earlier this month, CrowdStrike shares have continued to gain ground. Importantly, the bullish two-bar candlestick formation has helped shift momentum leading into the company’s earnings report.
Looking ahead, investors should monitor several important price levels likely to attract interest amid CrowdStrike’s looming earnings report.
Lower Price Levels in Focus
A pullback from current levels could see the shares initially fall to the $235 area, a location where the price may find support from the prominent April countertrend high that formed towards the start of the stock’s down-trending move from October 2021 to January last year.
Ongoing selling may lead to a retest of this month’s low around $201, a region that has previously found a confluence of support from August 2022 peak and the upward sloping 200-week MA.
Overhead Price Levels in Play
Further upside could see the shares climb to $285, an area on the chart just above the 50-week MA where investors may look to place sell orders near a trendline linking two peaks in August and October 2021 with the April 2024 swing low.
A convincing move above this level could fuel a move up to $330, where the shares may encounter overhead resistance near a period of narrow consolidation that formed on the chart between early February and late March this year.
Longer-Term Price Target
We can project a longer-term price target by using a bars pattern. We do this by taking the stock’s strong pandemic trending move from March 2020 to February 2021 and position it from this month’s low, which forecasts a target of around $1,205. We selected this trending move as it followed a steep five-week correction of around 50%, similar in size to CrowdStrike’s recent five-week drop.
CrowdStrike shares were up 0.3% at $272.43 about two hours before Monday’s opening bell.
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In conclusion, CrowdStrike shares have shown resilience following the recent IT outage caused by an erroneous software update. The stock has gained 35% from its August low, indicating that investors may have already priced in the impact of the outage. As the company prepares to release its quarterly earnings report, investors should pay attention to key price levels, including $235 and $201 as potential support levels, and $285 and $330 as overhead resistance levels. Additionally, a longer-term price target of around $1,205 can be projected based on the stock’s previous trending move. Overall, CrowdStrike’s performance in the coming weeks will be closely watched by investors and analysts alike.
