CRWD - Cup and Handle Breakout -Daily

21 Sep

This chart depicts the stock price action of **CrowdStrike Holdings, Inc. (CRWD)** on the NASDAQ, displayed on a daily timeframe. Here's a breakdown of the analysis:

### Key Observations:

1. **Cup and Handle Formation:**
- The chart clearly shows a **Cup and Handle** pattern forming, which is a bullish continuation signal.
- The "cup" spans from June to September 2024, with a rounded bottom, followed by a "handle" pattern, signaling a potential breakout above the resistance level.

2. **Breakout Level:**
- The stock is currently trading at **$299.85**, near the 50% Fibonacci retracement level of **$299.68**, which serves as a key resistance area.
- The price recently broke above **$285.27** (0.382 Fibonacci retracement), further reinforcing the bullish trend.

3. **Targets:**
- If the breakout sustains, the immediate target is the **0.618 Fibonacci retracement level** at **$323.16**.
- Further upside potential could take the price to **$369.55** (0.786 Fibonacci) and the all-time high of **$399.16**.
- The measured move from the cup's depth suggests a price target of **$369.55**, representing a potential gain of **29.74%** from the breakout.

4. **Support Levels:**
- If the breakout fails, the immediate support level is around **$285.27**, with a stronger base at the **0.236 Fibonacci level** of **$247.16**.
- The lowest support for a strong reversal would be near **$200.21**.

5. **Volume Surge:**
- There is a noticeable increase in volume, especially on breakout days, which adds confirmation to the strength of the bullish move. **17.875M** shares were traded on the latest breakout.

6. **Relative Strength Index (RSI):**
- The RSI is currently at **69.11**, near overbought territory, which may signal potential profit-taking or consolidation before further movement.

### Conclusion:
- The chart is exhibiting strong bullish momentum following the breakout from a classic **Cup and Handle** pattern. Potential upside targets include **$323.16** and **$369.55**, while support lies around **$285.27** and **$247.16**.