CRDO: Multi-TF Bearish Divergence Signals a Major Correction
CRDO has hit the target shared previously (see attached post).
Now it appears to be entering a significant corrective phase after an extended bullish run.
The stock has developed bearish divergence on both the Daily and Weekly timeframes, indicating that bullish momentum has been fading despite price making new highs. It recently reached the upper boundary of a rising wedge near 308, where sellers stepped in aggressively.
Adding to the bearish case, price formed an Evening Star reversal pattern, followed by a gap-down session that confirmed the shift in momentum. The subsequent breakdown below the wedge occurred on nearly four times the average daily trading volume, suggesting strong institutional selling rather than routine profit-taking.
In the short term, CRDO could attempt a throwback to retest the breakdown area around 260. However, unless that level is reclaimed decisively, the path of least resistance remains to the downside.
Key support levels to watch are:
199 – First major support
149 – Secondary support
86–90 – Long-term measured target based on the wedge breakdown
Bearish thesis invalidation: A strong daily close above 310 would invalidate the current bearish setup and shift the outlook back in favor of the bulls.
While short-term bounces are always possible, the combination of multi-timeframe bearish divergence, a completed rising wedge breakdown, heavy distribution volume, and a confirmed reversal candlestick pattern suggests that the correction may have only just begun.
Now it appears to be entering a significant corrective phase after an extended bullish run.
The stock has developed bearish divergence on both the Daily and Weekly timeframes, indicating that bullish momentum has been fading despite price making new highs. It recently reached the upper boundary of a rising wedge near 308, where sellers stepped in aggressively.
Adding to the bearish case, price formed an Evening Star reversal pattern, followed by a gap-down session that confirmed the shift in momentum. The subsequent breakdown below the wedge occurred on nearly four times the average daily trading volume, suggesting strong institutional selling rather than routine profit-taking.
In the short term, CRDO could attempt a throwback to retest the breakdown area around 260. However, unless that level is reclaimed decisively, the path of least resistance remains to the downside.
Key support levels to watch are:
199 – First major support
149 – Secondary support
86–90 – Long-term measured target based on the wedge breakdown
Bearish thesis invalidation: A strong daily close above 310 would invalidate the current bearish setup and shift the outlook back in favor of the bulls.
While short-term bounces are always possible, the combination of multi-timeframe bearish divergence, a completed rising wedge breakdown, heavy distribution volume, and a confirmed reversal candlestick pattern suggests that the correction may have only just begun.
עסקה פעילה
CRDO is moving as expected. hits back 270s again, only to fall again.הערה
CRDO is breaking very important support, 199 is likely next stop and the first target.הערה
199 loading הערה
CRDO hits first marked support, TP1 for the short.הערה
CRDO continues to bounce back and forth. while heading in the right direction.הערה
booking partial profit here for this short. will leave the remaing runner with a stop above 240הערה
CRDO isn't done yet. 150s would be an ideal spot to look for buy setups.
📊 Charts → 🏗️ Structure → 🎯 Probability =📖 Chart Story
⏳ Patience → 🚀Success
🎯 If this setup makes sense to you, show it some support with a Boost.
⏳ Patience → 🚀Success
🎯 If this setup makes sense to you, show it some support with a Boost.
פרסומים קשורים
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
📊 Charts → 🏗️ Structure → 🎯 Probability =📖 Chart Story
⏳ Patience → 🚀Success
🎯 If this setup makes sense to you, show it some support with a Boost.
⏳ Patience → 🚀Success
🎯 If this setup makes sense to you, show it some support with a Boost.
פרסומים קשורים
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.