CRWV, down 9% after a 15% sell-off on leverage and funding-cost worries, sits at crucial $60-$65 support; a bounce is technically expected if it holds, a break below $60 is an exit and a wedge breakdown points to about $41, with the debt coverage ratio pressuring the stock.
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But let's talk about a controversial case of whether that applies to CoreWeave and the move we saw, where a 15% sell-off occurred due to leverage concerns, rising funding costs, and their bonds reaching high levels.
Then we saw a recovery after many people came out, such as Jensen Huang, who defended them. And Dan Ives, who said that the sales were overrated. They recovered yesterday. Now I look at their graph again .
We are down 9% today in "Core". So, how do you view " Koroev" now, Tim? Is this a decisive moment for "Korweef," and will you need to make a decision to stay or leave?
For example, I was reading Jensen's comments and I said to myself, well, this guy is a billion times smarter than me , isn't he? He is defending the company. Now, what you're looking at here, I mean, this is a completely shattered graph.
I'm eager to see what "KG" will say about this idea. But, you know, you're looking at this thing. I mean, there have been many times during the past year where it has broken down to this level , which is basically where it is now, and then bounced off of it .
Now, as I mentioned, risk management is the foundation. Good. What I like about this chart is that you have a strong foundation here. As you know, where it's trading today in the early sixties, I think this is a very crucial moment , it's either survive or perish.
I love clear charts like these, where it's quite obvious , well, the stock has started to turn around. I have grounds from which I can say that I do not want to get involved in this mess below this level.
But when I look at the highs it has reached, I mean, look at April. I mean, he's back to this level. It has risen from 60 to 140. We were at this level in August. It went up from 60 to 120.
So, I like this as a method, you know, as a level to trade based on, it provides a very clear stop- loss point. If this stock breaks the 60 level, run away as fast as you can. And yes, I like trading based on these levels.
So, okay. So, 60 is the level that stands out for "Tim" as a level to exit. "KG," when you look at the chart for this stock, it will certainly be interesting to watch its performance this week, but if we look more broadly over the past year, I mean, it's a volatile name. What do you see in the technical setup?
Yes, if we actually look at the daily chart, and I'll be quick on this. Ah, Tim is right. I mean, this was a buying zone around the $ 60 to let's say $65 level , which is kind of a low point, and we see some buyers trying to step in.
We saw that almost in November of last year. We saw the same thing in December of last year, and the same thing happened in March of this year. There is definitely a trend that has formed.
July, another month in which everyone felt some kind of anxiety. We are returning to sitting at these levels. If you see this level defended between $60 and $65, technical analysts will be watching for a bounce, and that may have already happened yesterday.
We have seen a slight corrective rise. Yes, we received some positive feedback as well. But yesterday we actually saw a larger or higher trading volume than the previous day, when we witnessed the great crash.
I think this is actually very meaningful. Today we are down 9%, but at the end of the day we saw some good trading volumes here. If we are down 9% and trading volume is light, you can still say that the $60 level may hold.
The MACD indicator is in a bearish formation and will be activated below the 26 level. But keep an eye on the Relative Strength Index (RSI). The Relative Strength Index reached the oversold zone yesterday or the day before when we bounced back a little.
Will we form a higher bottom on the Relative Strength Index? I think this will be key for optimists to get into this stock. Then we'll move on to the three- year weekly chart because you'll get a slightly better perspective.
This is basically a descending wedge pattern that is happening now. Lower peaks, and you could say possibly lower bottoms are forming if you look at the wicks of the lower candles here.
This is the dividing line. If we see a break downwards, you are looking at a volume node at around $41 for the stock to be able to hold there. Therefore, this is perhaps a crucial "either success or failure" situation.
Technically speaking, you expect a bounce from here . Essentially , and I think this is outside the realm of politics, the debt coverage ratio is a concern, and I believe that is what is putting pressure on this stock and others in this sector.
So, let's see if it gets a bit of a corrective rise over the next couple of days, Marilyn.
It's almost the same idea with Core Wave at its 52-week lows. I truly believe that the resistance level that existed in the spring is a good support level to trade based on.
As I mentioned regarding CoreWave, if the stock breaks this level, it gives you a clear indication to say: "Okay, it was on an upward trend, and made huge gains in the last six months , but it crashed and declined, so let's move on to something else ."
But if it can hold at this level with today's selling and maintain it, we could see a positive turnaround in all these stocks before or even after the election. I think it's a very good level to trade, and I admire the performance of this stock.
What this channel has said about $CRWV
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