CoreWeave Surges 7% To $129.55 Amid Strong Bullish Momentum

CoreWeave (CRWV) has demonstrated significant bullish momentum recently, surging 7.00% to $129.55 on August 8th, marking two consecutive days of gains totaling 17.52%. This strength occurs within the context of a volatile year, featuring substantial price swings from lows near $35 in early 2025 to an all-time high of $187 in June.
Candlestick Theory
Recent candlestick patterns show strong buying conviction. The session ending August 7th formed a large bullish Marubozu (opening near $115.02 and closing near highs at $121.08), followed by another robust white candle on August 8th closing near its high of $129.55. This pattern confirms aggressive accumulation. Key support is now established near $121.08 (the prior close) and further down near $110.24 (August 6th low). Resistance is evident near the psychologically significant $130 level, which rejected prices intraday on August 8th ($130.9799), and notably at the June peak of $187. The July 31st long green candle engulfing prior sessions and the bullish Piercing Line pattern formed on August 4th-5th further signal underlying strength.
Moving Average Theory
The 50-day moving average (approx. $125) recently crossed above the 100-day MA (approx. $135) in late July, signaling a bullish intermediate-term shift. Prices are currently trading above the 50-day MA ($129.55 vs ~$125) but remain below the 100-day MA (~$135) and the long-term 200-day MA (approx. $110). This structure suggests a potential emerging uptrend on shorter timeframes (supported by the 50-day cross) but still faces significant overhead resistance posed by the longer averages. Sustained price action above the 100-day MA would significantly bolster the bullish case.
MACD & KDJ Indicators
The MACD (12,26,9) recently generated a bullish crossover in early August after a period of consolidation below the signal line in July, indicating strengthening positive momentum. The histogram is trending positively but remains modest. The KDJ indicator (particularly the J-line) has rapidly ascended into the overbought territory (>80) following the sharp recent gains. While confirming immediate bullish strength, this overbought reading in KDJ suggests the potential for a short-term pullback or consolidation may be increasing.
Bollinger Bands
Bollinger Bands (20,2) show recent volatility compression during July's range-bound trading, as bands tightened significantly. The powerful breakout move over the last two sessions has propelled prices sharply upwards, touching and slightly breaching the upper band ($~130) on August 8th. This behavior signals a volatile breakout phase. While the breakout is directionally bullish, the proximity to the upper band and the magnitude of the move suggest prices may be momentarily stretched, warranting caution for new entries without consolidation.
Volume-Price Relationship
Volume confirmation provides strong support for the recent advance. The two significant up days (Aug 7th: 17.76M shares, Aug 8th: 17.05M shares) saw volume notably higher than the preceding down day (Aug 6th: 7.79M shares). This surge in volume accompanying price rises validates the upward momentum as being driven by substantial buying interest. Furthermore, generally higher volume during major upswings (e.g., June rallies, early July peak) versus volume on subsequent declines suggests accumulation is often a stronger force than distribution within the trend.
Relative Strength Index (RSI)
The 14-day RSI calculation places the indicator near 65 following the sharp rally. This reflects strengthening momentum but remains below the traditional overbought threshold of 70. The RSI has recovered substantially from oversold levels near 30 seen during July's decline. While the current RSI level doesn't indicate immediate overbought exhaustion, its rapid ascent aligns with the KDJ's overbought signal, warranting vigilance. The RSI trend is upward, confirming positive momentum.
Fibonacci Retracement
Establishing the key trend from the June peak (~$187) to the July trough (~$100) provides critical Fibonacci levels. The 50% retracement level lies near $143.5, which coincided with the July 31st high ($119.59 fell significantly short) and remains a key resistance. The 38.2% retracement near $125 has been decisively broken. With the current price near $129.55, the next significant Fibonacci targets are the 50% level ($143.5) and the critical 61.8% level (~$153.74). Support levels are found at the 38.2% level ($125) and below that, at the 23.6% level ($113.5), corresponding with recent swing lows. The challenge now lies in overcoming the strong resistance around the 50% Fibonacci level.
Confluence & Conclusion
Significant bullish confluence exists near the $121-$125 zone, combining the recent breakout pivot, the rising 50-day MA, and the 38.2% Fibonacci retracement level. The price surge on increasing volume, combined with bullish MACD crossover, confirms the upward momentum. However, overbought signals from the KDJ and the price stretching the Bollinger Bands highlight potential short-term exhaustion. While the MACD upturn supports continued upside, the divergence in KDJ warns of consolidation risk near current levels. Key resistance at $130 (psychological/prior high) and more significantly at $143.5 (50% Fibonacci/100-day MA) remains substantial. Support resides near $121 (prior swing high) and $113.5-$110 (Fibonacci/consolidation lows). The technical structure favors a constructive view with room for further recovery towards the $143.5 zone, contingent upon clearing immediate resistance and sustaining elevated volume. A pullback to test the $125 support seems plausible before a potential renewed attempt to overcome the $130 barrier.