Is CrowdStrike Stock Gearing Up for Another Breakout?

Cybersecurity stock Crowdstrike Holdings Inc (NASDAQ:CRWD) has garnered attention in 2024, gapping to a March 6, all-time high of $365 on the heels of a strong quarterly earnings report, before pulling back to support at the $360 level. The security has added 23.2% this year, and sports an enviable 133% year-over-year lead despite its recent breather, which presents an intriguing opportunity for traders who have yet to add CRWD to their portfolios.

Specifically, investors have the opportunity to buy Crowdstrike stock on the dip while it's within striking distance of its 80-day moving average -- a historically bullish trendline. Per Schaeffer's Senior Quantitative Analyst Rocky White's data, the security saw five similar signals during the past three years, defined for this study as having traded north of this trendline 80% of the time over the last two months, and in eight of the last 10 trading days.

Just one month later after 80% of those instances, the equity was higher, averaging an 8.2% gain. A comparable move from its current perch of $316.50 would put CRWD back above $342.

 

Options traders should think twice before passing up this opportunity, as options look affordably priced. This is per the security's Schaeffer's Volatility Index (SVI) of 36% that ranks in the low 9th percentile of its annual range, indicating these traders are pricing in low volatility expectations.