CrowdStrike (CRWD) shares are in the spotlight after Delta Air Lines (DAL) on Friday 澳洲幸运5官方开奖结果体彩网:filed a lawsuit against thܫe cybersecurity provider following a faulty software update in July that brought i⛎ts operations to a standstill and caused mass flight cancellations.

The Atlanta-based airline alleges that the incident, which also disrupted industries including banks, health care, and media outlets, cost it more than $500 million, along with loss of future revenue and reputational damage.

Despite ongoing concerns of further litigation linked to the software update, CrowdStrike shares have gained around 50% from their early-August low as of Friday’s close amid 澳洲幸运5官方开奖结果体彩网:growing consensus among analysts that the firm sits poised to move pas🐭t the incident🌳 in a strong position.

Below, we analyze the 澳洲幸运5官方开奖结果体彩网:technicals on CrowdStrike’s chart and point out🧜 key price levels to watch out for.

Rising Wedge Breakdown

Since bottoming out in early August, CrowdStrike shares have oscillated within a 澳洲幸运5官方开奖结果体彩网:rising wedge, a chart pattern featuring two upward sloping converging 澳洲幸运5官方开奖结果体彩网:trendlines that signals weakening price momentum.

More recently, the stock has broken below the pattern’s lower trendline, potentially setting the stage for a 澳洲幸运5官方开奖结果体彩网:continuation of the 澳洲幸运5官方开奖结果体彩网:downtrend that started in early July, just weeks before t🍒he company’s erroneous software update.

The stock was little changed at around $300 ꦏin prem𝔍arket trading Monday.

Let’s iden🔜tify four important lower price levels on CrowdStrike’s chart that may come into play if the shares continue their move lower from current levels. 

Important Lower Price Levels to Watch

Upon an initial move lower, investors should monitor the $285 level, an area just above the 澳洲幸运5官方开奖结果体彩网:50-day moving average where the shares could encounter support near a trendline joining multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs on the chart from January to August.

A close below this level could see the shares decline to around $262. Investors may view this location on the chart as a buying opportunity, given it sits near a 澳洲幸运5官方开奖结果体彩网:horizontal line linking a series of simar trading levels between Deಞcember and September.

Further selling in the stock opens the door for a bearish move down to the $244 region, where the price could attract support near the January pullback low and prominent early September trough. 

Finally, a longer-term downtrend could see the shares revisit lower support at $172, where bargain hunters may look to place 澳洲幸运5官方开奖结果体彩网:buy limit orders around the September 2023 澳洲幸运5官方开奖结果体彩网:swing high and October 2023 swing low. This area on the chart also roughly aligns with a bars pattern downside 澳洲幸运5官方开奖结果体彩网:price target that takes the stock’s sharp trend lower from July to August and repositions it from 🔯this month’s swing high.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网: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.