CoreWeave gains 19%, Nebius surges 34% in post-earnings neocloud rally
CoreWeave, an AI cloud company, saw its revenue double in the second quarter, driven by explosive AI demand from hyperscalers, leading to a surge in pre-market trading.
In conclusion, I considered entering at the current price of $107.73, as it has already surpassed the 20-day high of $94.30. Taking into account the strong performance reported by CoreWeave and Nebius, along with the bullish sentiment in the AI cloud rally, I reviewed the price movement that has broken above the 20-day high resistance level and noted that the trading volume has increased to 1.66 times the 20-day average.
To conclude, I will set the profit-taking target around the resistance level of $94.3, which is the peak on the 20th, and will cut losses if the support level of $60.55 is breached. If the stock price rises further and breaks through the resistance level of $94.3, I will use this as the basis for profit-taking, and during a short-term correction, I will observe whether the area around $94.3 acts as a psychological support level.
Upon examining the technical indicators at the entry point, the RSI(14) stands at 55.2, indicating a neutral level, while the moving averages are in a non-aligned state. The trading volume is 1.66 times the 20-day average, and the volatility over the past 7 days has recorded a +25.8%.
To conclude, I entered the market believing in the short-term surge due to strong performance and the breakout of resistance levels, but the actual result was a loss of -15.7%, resulting in a FAILED rating. At the time of entry, I expected an upward trend based on the price of $107.73, which had broken above the 20-day high of $94.30, and a trading volume that was 1.66 times the 20-day average. However, I did not adequately guard against the risk that the stock price was already nearing a short-term peak amid the sharply increased volatility of +25.8% over the past 7 days and the disordered moving averages.
In conclusion, in future trading, I will refrain from chasing purchases when technical warning signals, such as the misalignment of moving averages, coincide with a surge due to favorable news. Instead, I will wait for a pullback near more conservative support levels. Based on the confirmed failure data of -15.7%, I will apply a principle of managing the gap between target prices and stop-loss prices more strictly in periods of excessive volatility in the next trades.