CrowdStrike (CRWD) shares are likely to remain in focus after surging more than 9% Tuesday following news of a 澳洲幸运5开奖号码历史查询⭕:cyber attack against Chinese AI startup DeepSeek.

The security incident follows reports that 澳洲幸运5开奖号码历史查询:DeepSeek's AI model can compete with leading American AI technology, such as OpenAI’s ChatGPT, at a significantly lower cost, The attack may have boosted expectations among investors that 澳洲幸运5开奖号码历史查询:cybersecurity firms, such as CrowdStrike, stand to benefit from iꦺncreasing demand for their offerings as the race for AI leadership intensi🦂fies in coming years.

Sentiment toward the stock may have also received a lift after the company said Tuesday that its Falcon cybersecurity platform achieved a perfect score in a real-world 澳洲幸运5开奖号码历史查询:ransomware test. CrowdStrike shares have jumped nearly 20% since the start of the year and trade 41% higher over the past 12 months. The stock closed🐻 Tue꧒sday at around $409.

Below, we break down the 澳洲幸运5开奖号码历史查询:technicals on CrowdStrike’s chart and identify key price levels that investors mayꦺ be monitoring.

Rectangle Pattern Breakout

Since the 澳洲幸运5开奖号码历史查询:50-day moving average (MA) crossed back above the 200-day MA in late November to form a 澳洲幸运5开奖号码历史查询:golden cross, CrowdStrike shares have consolidated within a 澳洲幸运5开奖号码历史查询:rectangle formation, a chart pattern that signals a 澳洲幸运5开奖号码历史查询:continuation of the stock’s longer-term uptrend.

Indeed, the price staged a decisive volume-backed breakout above the pa🐼ttern’s upper trendline on Tuesday, se🍃tting the stage for further upside.

Moreover, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) confirms bullish price momentum with a reading above the 70 threshold, though it also places the indicator in 澳洲幸运5开奖号码历史查询:overbought territory, increasing the possibility 𝓡for short-term profꦕit-taking.

Given the stock’s move into 澳洲幸运5开奖号码历史查询:price discovery mode, let’s use technical analysis to forecast a potential upside target and also identify two key 澳洲幸运5开奖号码历史查询:support levels to watch during pullbacks.

Upside Target to Monitor

Inv🌳estors can forecast how a continuation move to the upside may look by using the bars patt𒈔ern tool. 

To apply the technique to CrowdStrike’s chart, we extract the price bars comprising the stock’s trend higher from October 2023 to February last year and reposition them from Tuesday’s breakout, which predicts a target of around $735𝓀, 80% above toda⛦y’s closing price.

We selected this prior trending move as it followed a breakout from an earlier rectangle pattern on the chart, potentially providing clues to how a new continuation move may play out from a similar setup if 澳洲幸运5开奖号码历史查询:price action rhymes.

Key Support Levels to Watch

During profit-taking periods, investors should initially track the $378 level. The shares may encounter buying interest in this area on 澳洲幸运5开奖号码历史查询:retracements to the rectangle pattern's top trendline, which may flip from a location of prior 澳洲幸运5开奖号码历史查询:resistance into future support.

Finally, the bulls’ inability to defend the above level could see CrowdStrike shares drop to around $338, a region where investors may look to open positions near a 澳洲幸运5开奖号码历史查询:horizontal line that stretches back to last February’s prominent peak, which also forms the rec✤tangle pattern’s lower trendline.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.