Is it a good time to buy the dip of CRWD or MSFT yet?
My personal view is that this is just phase 1 for the CRWD fiasco.. a drop of 10% is expected and it will try to hold at its current level which is still on MA for support. Shorting maybe hard as yesterday and Monday will be Short Seller Restricted. Whether it will continue to go down or not next week, I can’t be sure but support is seen at 290, which is at 200EMA
Over the next few weeks I will be assuming that government organisations and corporations may report their losses due to this fiasco and that will be phase 2 which will bring down the stock price further.
Phase 3 will be their earnings report and it may not be pretty. Brand reputation is impacted as many customers MAY choose to scale down their use of Crowdstrike falcons. Replacing them overnight is impossible but many may choose to remove it from their POS systems, ticketing system,etc.. when it comes to security and operations, CEO and management will choose operations as it hurts their revenue. They will prioritise less about security for now, lets be frank, these guys ain’t techies..
As for MSFT, the technical chart has shown that it is going on downward trend whereby a higher EMA is crossing below a lower EMA on daily chart. This fiasco is not the main cause of its decline. However, MSFT is looking oversold soon at its daily chart and it looks to me as a good buy.
MS Windows OS is widely used and many software are developed around it. In the short term, there is no way to replace it therefore this fiasco will not hurt the demand for Win OS. However, it may boost other competing products such as Mac OS or Andriod OS devices so lets watch and see.
In summary, this is my personal view and was never meant to be any financial advice. Thank you.
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I ain’t any guru… i follow technicals and trend line of the market
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102872179 : Logical reasoning. Appreciate the sharing of your view.
Fundamentalist : No, too overpriced