This Cybersecurity Stock Looks Attractive After Establishing A 'Very Bullish Technical Formation'

CrowdStrike Holdings Inc CRWD shares nearly touched $300 last year before spiraling lower with the overall market as growth stocks took a back seat to value names amid rising inflation.

After being cut in half, Virtus Investment Partners' Joe Terranova believes the cybersecurity stock has found a bottom.

In fact, "a lot of the software names bottomed ahead of the S&P 500," Terranova said Wednesday on CNBC's "Fast Money Halftime Report."

The bottom for the S&P 500 was on May 20, but software names bottomed about a week before, including CrowdStrike, he said.

"If you go back to the experience of 2008 and 2009, what you'll find is that software bottomed ahead of a lot of the estimates coming down further," Terranova said.

The Kicker: After putting in what Terranova expects to be the lows for CrowdStrike, the stock has formed a "very bullish technical formation that seems to be building," he said. "So I obviously purchased that name."

He noted that the market has absorbed a lot of negative news in recent weeks, which seems to be signaling a bottom for the overall markets. 

If he is right and the bottom is in, CrowdStrike should be set to trade higher from a technical perspective on any catalyst for the overall market, which could come as soon as Friday when CPI data for May is released, he said. 

See Also: What Are Whales Doing With CrowdStrike Holdings

CRWD Price Action: CrowdStrike has a 52-week high of $298.48 and a 52-week low of $130. 

The stock was up 0.62% at $177.78 at press time, according to data from Benzinga Pro.

Photo: aichinger76 from Pixabay.