CrowdStrike Holdings, Inc. (CRWD) share rose more than 8% during Monday's session amid rising tensions between the United States and Iran. After the assassination of a top Iranian military official, the country warned that it would retaliate against the United States. Iran's long history of cyber attacks and disinformation campaigns could be a means of retaliation without opening the door to military conflict.
CrowdStrike CEO George Kurtz told Jim Cramer last week that cyber attacks were possible and that the company was prepared to help identify and protect against those attacks should they occur. The speculation helped the entire cybersecurity sector gain ground, including Palo Alto Networks, Inc. (PANW), FireEye, Inc. (FEYE), and NortonLifeLock Inc. (NLOK), although CrowdStrike was the biggest gainer during Monday's session. Earlier this year, Nomura analysts predicted that CrowdStrike stock would realize another year of "hyper-growth" and maintained its Buy rating and $71.00 price target.
From a technical standpoint, the stock broke out from its 50-day moving average at $51.09 toward prior highs of around $60.00. The relative strength index (RSI) rose toward oversold levels with a reading of 61.34, but the moving average convergence divergence (MACD) could see a near-term bullish crossover above the zero-line. These indicators suggest that the stock could have more room to run over the coming sessions.
Traders should watch for a breakout toward prior highs of around $60.00 over the coming sessions. If the stock breaks out from those levels, traders could see a move toward prior highs of around $70.00. If the stock fails to break out, traders could see some consolidation between $50.00 and $60.00. A breakdown from $50.00 could lead to a move toward lows of $45.00, although that scenario appears less likely to occur.
The author holds no position in the stock(s) mentioned except through passively managed index funds.