CrowdStrike Holdings, Inc. (CRWD) is a cybersecurity technology company based in Austin, Texas. It specializes in providing cloud workload and endpoint security, threat intelligence, and cyberattack response services. The article discusses a forecast made three years ago, analyzing the market cycle and potential corrections in the stock price.
The initial forecast predicted the end of an important market cycle in a specific price range, with expectations of an impulse ending as wave (I) and a subsequent correction as wave (II). The wave (I) was expected to end in a proposed blue box area, which was fairly accurate as the market did react as planned. The completion of wave (II) at a low of 150.02 signaled a potential bounce and continuation of the rally.
Fast forward three years, the analysis delves into the current weekly chart of CRWD. It reveals that the cycle previously thought to have ended at 150.02 was actually part of a larger correction, consisting of wave “w”, “x”, and “y”. The rally that was anticipated in January 2022 was slightly delayed to January 2023, resulting in a clear impulse to the upside and new all-time highs being reached.
Following the completion of wave (III) at 398.33, there was a sharp drop in the stock price, leading to a 50% loss in value. The analysis suggests that wave II could already be complete, but there are indications of a bigger wave II correction on the horizon. The global market conditions are displaying signs of bullish exhaustion, which could translate into further downside for the stock.
The article highlights that wave ((A)) of wave II ended at 200.81, anticipating a corrective rally to stay below the high of 398.33. The expectation is for the market to resume lower in wave ((C)) of II to complete the structure before resuming the upward trend. This analysis indicates a cautious approach to the future movement of CRWD’s stock price.
The detailed analysis of CrowdStrike Holdings, Inc. (CRWD) provides valuable insights into the potential market cycles and corrections. The accuracy of the initial forecast, along with the current market analysis, sheds light on the complexities of stock price movements. The anticipation of a larger wave II correction underscores the importance of closely monitoring market trends and actively managing investments in the cybersecurity technology sector.