CRWD has a strong uptrend and excellent technical position; current overbought status indicates waiting for a pullback to the 21-day or 50-day MA before adding to positions.

CrowdStrike has always been a favorite name. In general, the names of cybersecurity companies were in a very good position technically. What is really interesting about the CrowdStrike chart, by the way, is if you look at the rally that followed the market low in March.

It is worth noting that CrowdStrike hit its bottom before the S&P index. The S&P 500 index reached its bottom at the end of March. CrowdStrike bottomed out in February and established a higher low in March, but then broke through the 200-day moving average.

And now, from that point on, there was a very strong upward trend in April and May. We saw a slowdown in the upward trend in June, July and August. Notice how the pace of progress has slowed down a little.

We are falling back to the 50-day moving average several times here. The momentum of the movement is decreasing slightly. The Relative Strength Index (RSI) fell below 50 on two occasions.

But look how it reappeared again. I would like to say that this breach, excuse me. Breaking above the 230 level was very important. That was a significant upward movement. Follow-up then came in the weeks that followed.

Today we are setting another new record, surpassing 280 for the first time. The Relative Strength Index (RSI) is in overbought territory.

What I would say about a chart like CrowdStrike, where the Relative Strength Index is in overbought territory, is that being in overbought territory in itself is not necessarily a bad thing.

I always tell people that saturation means a significant price increase. This means the stock is in a major upward trend. That's kind of what we want. Now, does this mean that today might be the ideal time to increase financial position?

Maybe not. Because if you look at previous times when we were in an overbought zone, we often saw a slight pullback. We ended up forming a higher bottom, and then you get a very good entry point to ride the next upward wave.

Also remember that when a stock becomes overbought, it may remain so for a long period of time. Here in May and into early June, the stock entered an overbought state and remained so for about a month before eventually pulling back a little.

Therefore, just having the Relative Strength Index (RSI) above 70 is not necessarily a bad thing. When the price falls below the 70 level, it might signal to you, "Okay, hold off a bit."

Let's look forward to that pullback towards the 21-day exponential moving average, or at most the 50-day moving average. These are some potential pullback targets that we can use to identify the next upward phase.

But, from a broader perspective, CrowdStrike appears to be in an excellent position.