Check out these CrowdStrike price levels following Delta Files lawsuit over July IT system outage

Crowdstrike (CRWD) shares came into focus after Delta Air Lines (DAL) on Friday filed a lawsuit against the cybersecurity provider after a flawed software update in July halted its operations and led to mass flight cancellations.

The Atlanta-based airline says the incident, which also disrupted industries such as banking, health care and media, cost it more than $500 million and resulted in the loss of its future. income and reputational damage.

Despite ongoing concerns about further litigation related to the software update, CrowdStrike shares are up about 50% from their early August low as of Friday’s close amid ongoing concerns about further litigation related to the software update. . Growing consensus among analysts that the company is ready to emerge from the incident and take a strong position.

Below we analyze technique on the CrowdStrike chart and identify key price levels to watch.

Rising Wedge Breakout

Since bottoming in early August, CrowdStrike stock has fluctuated between rising wedgefigure showing two upward converging slopes trend lines this signals weakening price momentum.

Most recently, the stock broke below the lower trendline of the pattern, potentially setting the stage for further gains. continuation belonging downtrend it started in early July, just weeks before the company’s faulty software update.

Shares were little changed at around $300 in premarket trading Monday.

Let’s identify four important lower price levels on the CrowdStrike chart that could come into play if the stock continues to move below current levels.

Important low price levels to watch out for

For the initial move down, investors should keep an eye on the $285 level, the area just above 50 day moving average where stocks can meet support next to a trend line connecting several peaks and troughs on the chart from January to August.

A close below this level could see the stock fall to around $262. Investors may view this spot on the chart as a buying opportunity as it is near horizontal line connecting a number of similar trading levels in the period from December to September.

Further selling in the stock opens the door for a bearish move lower towards the $244 area, where the price could find support near the January mark. rollback low and noticeable trough in early September.

Finally, a long-term downtrend could see the stock reach lower support again at $172, where bargain hunters could position their positions. buy limit orders around September 2023 swing high and a minimum of October 2023. This area on the chart also roughly coincides with a downward bar pattern. target price this causes stock prices to decline sharply from July to August and moves them away from that month’s high.

Comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Read our disclaimer of warranty and liability for more information.

At the time of writing, the author does not own any of the above securities.