Currently up about 2% on the day, the stock's post-earnings reaction still seems a bit murky.
Of course, with an interest rate decision and commentary from the Federal Reserve due up later this afternoon, it’s anyone’s guess how the market will close.
Regardless, the market seemingly likes the earnings report that CrowdStrike issued on Tuesday. With better-than-expected earnings and revenue, along with solid guidance, what’s not to like?
After a dip in February, CrowdStrike, Palo Alto Networks (PANW) - Get Palo Alto Networks Inc. Report, NortonLifeLock (NLOK) - Get NortonLifeLock Inc. Report and others are trying to rebound. Can CrowdStrike take the lead? Let’s look at the chart.
Shares of CrowdStrike continue to hold right where they need to.
The stock continues to find support at the 21-week moving average and is holding up over the $193.70 area. That level comes from its prior gap up in December.
While CrowdStrike is up on the day, its meager post-earnings rally may not act as a huge inspiration for the bulls.
Back over the 10-day moving average is a start, but we need to see this name clear $220 to start making some real headway.
Over $220 will put CrowdStrike back over the 61.8% retracement, as well as the 21-day and 50-day moving averages. Clearing these marks will put bulls back in control and put the $230 area in play, followed by a possible retest of the highs near $250.
On the downside, the levels are pretty clear too.
We need to see CrowdStrike hold the 100-day moving average, currently near $190. If it fails, it puts shares below the key 21-week moving average, as well as at that gap-up level I referenced earlier.
A close below the 100-day moving average puts the Q1 low in play at $168.67, followed by the 200-day moving average.
For now, CrowdStrike stock tilts bullish because of the solid earnings report, bullish consolidation over the last several months and because it continues to hold key support.
That said, it’s not a slam dunk for the bulls. They need to get a rotation going up over the $220 area.