Market Minute: CrowdStrike Strikes Back: All-Time Highs Into Today’s Earnings

CrowdStrike (CRWD) is due to report earnings after today’s close, with analysts expecting the cybersecurity company to post earnings per share of $0.66 and revenue of $1.10B, according to Zacks. Notorious for causing a worldwide computer system outage due to distributing a faulty software update on Jul. 19, 2024 that crashed shares -36%, CRWD has come roaring back and hit a new all-time high close of 479.17 yesterday. The stock has soared more than 138% since the post-outage lows near 200.81 and has far eclipsed its previous highs of around 398 before the outage, offering traders a reminder of the risks of volatility and how quickly fortunes can change in financial markets.

However, CRWD held a much more important low recently. Shares saw rangebound trading between about 300 to 310 and then a gap up during October to November of last year, and then held this same support zone in March and then again in April during the tariff news announcements that roiled markets. This low point roughly matches up to a volume node on the yearly Volume Profile study as well as with the old highs from November, 2021, which adds an extra layer of emphasis on this as an important area for the bulls to have held.

In terms of more recent moves, price yesterday broke above the yearly +1 Standard Deviation Channel near 472, which is often used by traders as a measure of potential support or resistance, so this now becomes a general area to watch today. Traders also may be eyeing the 455 region because it represents the old highs from Feb. 19, and it was where price held support last week after its upside breakout. To the upside, the +2 yearly Standard Deviation Channel comes in at around 532 based on yesterday’s close. As traders have no prior price activity to use to project resistance in this case, some may use this study to gauge how extreme the move has been relative to its own price history.