CRWD - US cybersecurity play
Updated
If this market will find traction and have a follow-through day, I will bet on CRWD being one of the next up-cycle leaders.
IBD 94 Relative strength and 99 Composite and EPS ratings are markers of a superb company. The industry group is 35 out of 197. High double and triple quarter earnings growth and stable 40+ sales growth for 3 qrts in a row; with stable 35+ ROE; Up/Down volume of 1.5; double digits analyst estimates of 24/25 EPS growth and increasing number of institution last qrt... all these make me call this stock a perspective leader.
From the technical perspective, notice how well the stock price holds and builds the high-handle close to 2023 highs, while general index (line above) is in a downward momentum being almost 10% of the highs. Unfilled gap-up on 31Aug (green circle) is also a sign of strength to me.
I want the price to subside more in volatility to the right side of the handle, creating a tight 3-4% risk pivot and maybe an inside day before breaking out above 172 pivot. That would signal and ideal entry point for my strategy with very tight risk. Although if price decides not to wait and will proceed with definite move above 172 pivot with supportive volume and will be hesitant to buy/add to the position, expecting the price to move to next resistance 194-206 target area.
Trading thesis is wrong if price moves bellow: 157 area
IBD 94 Relative strength and 99 Composite and EPS ratings are markers of a superb company. The industry group is 35 out of 197. High double and triple quarter earnings growth and stable 40+ sales growth for 3 qrts in a row; with stable 35+ ROE; Up/Down volume of 1.5; double digits analyst estimates of 24/25 EPS growth and increasing number of institution last qrt... all these make me call this stock a perspective leader.
From the technical perspective, notice how well the stock price holds and builds the high-handle close to 2023 highs, while general index (line above) is in a downward momentum being almost 10% of the highs. Unfilled gap-up on 31Aug (green circle) is also a sign of strength to me.
I want the price to subside more in volatility to the right side of the handle, creating a tight 3-4% risk pivot and maybe an inside day before breaking out above 172 pivot. That would signal and ideal entry point for my strategy with very tight risk. Although if price decides not to wait and will proceed with definite move above 172 pivot with supportive volume and will be hesitant to buy/add to the position, expecting the price to move to next resistance 194-206 target area.
Trading thesis is wrong if price moves bellow: 157 area
Note
Correction: I will NOT be hesitant to initiate/add to position if price moves above 172 (what it did on this Friday)Trade active
Entered on Friday and build full position during the day with average cost around 172 areaNote
Price is inside important zone of mid-term resistance: 227-242Trimming some of the open position and letting the trend ride. Close bellow 8 ema and than 21 ema will be important signals for possible change in trend.
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