CrowdStrike Stock Sees Surge In Options Trading Before Q1 Earnings, Charts Indicate Bearish Momentum

CrowdStrike Holdings Inc CRWD will be reporting its first-quarter earnings on Tuesday. Wall Street expects 90 cents in EPS and $904.66 million in revenues as the company reports after market hours.

The stock is up 100.34% over the past year, 20.90% YTD. CrowdStrike stock is experiencing high options trading volume and is expected to post strong first-quarter results. On Monday, 49,780 contracts were exchanged, signifying around 5.0 million underlying shares.

That is equivalent to roughly 173.8% of the 2.9 million shares that had traded on a daily average for CRWD stock over the previous month. The $250 strike put option, which expires on June 07, saw particularly significant movement; 1,392 contracts, or around 139,200 underlying shares of CRWD, were traded on Monday.

Morgan Stanley sees the stock reaching a $100 billion valuation, while Macquarie believes CrowdStrike and Zscaler Inc ZS are well-positioned to benefit from increased cybersecurity spending following recent hacks on healthcare companies.

Additionally, the company is in a good position to capitalize on the trend of artificial intelligence making security organizations more productive.

Let’s look at what the charts indicate for CrowdStrike stock and how the stock currently maps against Wall Street estimates.

Selling Pressure & Bearish Signals Ahead Of Q1 Earnings 

Charts indicate that the current trend for CrowdStrike stock is strongly bearish as the share price is below its 5, 20, and 50-day exponential moving averages.

Chart: Benzinga Pro

This indicates selling pressure and a risk of future bearish movement.

The 8-day, 20-day, and 50-day simple moving averages all indicate bearish momentum, with the stock price below these averages. However, the stock is currently trading above its 200-day simple moving average, which is a longer-term bullish signal.

Chart: Benzinga Pro

The MACD indicator at 3.25 also suggests bullishness, while the RSI indicates that the stock is nearing the oversold territory.

The Bollinger Bands suggest a bearish signal, with the stock trading in the lower band and treading lower still.

Overall, while there are conflicting signals in the technical analysis, the stock is currently experiencing selling pressure and may continue on a bearish trend in the near future.

Also Read: CrowdStrike To Rally Over 15%? Here Are 10 Top Analyst Forecasts For Wednesday

CrowdStrike Analysts Are Bullish, See 32% Upside

Ratings & Consensus Estimates: The consensus analyst rating on CrowdStrike stock stands at a Buy with a price target of $374.50. Recent ratings received from JPMorgan, Morgan Stanley, and JMP Securities, have an average price target of $407.33 for CrowdStrike stock, implying a 31.68% upside from current price levels.

CRWD Price Action: CrowdStrike stock closed at $308.69 on Monday, down 1.59%.

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