Stock Of The Day: Is CoreWeave About To Break Out?

CoreWeave, Inc. (NASDAQ: CRWV ), our Stock of the Day, is consolidating. As you can see on today’s chart, the shares have stalled at resistance around $92.00. A classic ‘flag’ pattern may have formed. In this case, it could be bullish and suggest that the resistance will break and the shares will move higher. Technical analysis has a dubious reputation on Wall Street. Unfortunately, it is well-deserved. Many technical analysts don’t understand the fundamentals of the analysis. They look at charts and try to identify patterns without understanding the trading dynamics and market action that creates these patterns. This is why they are not successful. CoreWeave ‘Flag’ Pattern Continues Unlike a reversal pattern that illustrates a change in the trend, this pattern shows a break in the trend before it continues. It happens when people who are buying the shares think they may be the...