CoreWeave Slides 3.17% to 96.8 Amid Bearish Technical Signals and Elevated Volume

CoreWeave (CRWV) declined 3.17% in the most recent session, closing at 96.8 after trading between 96.7 and 103.91 on elevated volume of 33.44 million shares. This continues a volatile downtrend from mid-June's peak of 183.58.
Candlestick Theory
Recent sessions show bearish confirmation patterns. The August 13-14 formation depicts a bearish engulfing candle (117.76 open to 99.505 close) following a 20.83% down day, signaling strong selling pressure. The August 18 session printed a long upper shadow near $103.91, indicating rejection at psychological resistance of $100-$105. Key support emerges at the August 15 low of 94.7, while overhead resistance solidifies at the breakdown point of 110-112, aligning with multiple prior swing lows.
Moving Average Theory
The 50-day MA (approximately 129.50) crossed bearishly below the 100-day MA (near 135.60) in late July, then both breached the 200-day MA (around 120.80) in early August – a "death cross" configuration confirming bearish dominance. Current price trades 25% below the 50-day MA, highlighting strong downward momentum. The alignment of all three MAs in descending order reinforces a structural downtrend.
MACD & KDJ Indicators
MACD (12,26,9) maintains negative territory since mid-July, with the August 12-13 minor convergence failing to produce momentum reversal as subsequent selling accelerated. KDJ (9,3,3) shows the %K line at 25 and %D at 30 – hovering near oversold but without bullish crossover. Both oscillators reflect persistent bearish momentum, though oversold readings caution against aggressive downside bets without confirmation.
Bollinger Bands
Bands expanded dramatically during the August 13-14 breakdown (20-day SMA at 115, width spiking to 35% of price), reflecting panic selling. Recent band narrowing (width now ~18%) suggests decreasing volatility, but price remains pinned against the lower band – a bearish continuation signal. Sustained trade below the lower band (currently ~92) would indicate oversold extremes.
Volume-Price Relationship
Distribution patterns validate the downtrend, with highest volumes accompanying breakdowns: June 5 (-17.2% on 55M shares), August 13 (-20.83% on 37M shares). Recent sessions show above-average volume on declines (August 14-15: 51-52M shares) versus below-average volume on minor rebounds, confirming weak buying interest. The lack of volume expansion on upside attempts undermines reversal potential.
Relative Strength Index
14-day RSI reads 30.2, approaching oversold territory (<30) for the first time since May. However, similar oversold readings in late June (RSI 29) preceded only transient bounces before new lows. Bearish divergence occurred in early August when RSI failed to surpass 50 despite price rallying to 148.75. Current RSI warns of potential relief rally but requires supporting signals for credibility.
Fibonacci Retracement
Applying Fib levels to the June 20 high (183.58) and August 18 low (96.7) shows critical technical thresholds: The 38.2% retracement (125.20) served as resistance on August 11-12. Current price trades below the 23.6% level (105.50), with the 0% extension (96.7) acting as immediate support. Confluence exists at the 61.8% retracement (141.40), aligning with the 200-day MA and August rejection zone.
Confluence & Divergence Observations
Multi-indicator confluence appears at 92-94 support, combining the Bollinger lower band, psychological $90 support, and August 15 swing low. A key bearish divergence emerged in mid-July: While price made higher highs (183.58 vs 173.68), RSI registered lower highs (60 vs 55) – an early reversal warning validated subsequently. The absence of bullish divergences currently reinforces downside bias, though oversold conditions (RSI, Bollinger bands) suggest short-term consolidation probabilities are rising.