Charts to Watch: CRWD, RAIL, INSW

SPEAKER_1 (0:00)

It's time now for Charts to Watch, and joining me right now, Ben Watson, Senior Manager of Trading Services here at Charles Schwab, taking a look at CrowdStrike and those shares hitting new all-time highs today, along with some of the other cybersecurity names, as there are more fears about the AI names. And that has been the train that we've been talking about now for several weeks. Concerns about AI, instead of making cybersecurity obsolete, on the contrary, have now, more need for cybersecurity. Tell me a little bit about the technicals on CrowdStrike.

Ben Watson (0:33)

Hi, Nicole. Unfortunately, fear seems to be the name of the game and the common thread amongst a number of names today and CrowdStrike no different. The fear of AI slowdowns and AI security risks has pivoted investors over to CrowdStrike away from some of those AI drivers that we've typically seen.

I like the way you put it in that it is the potential for an increased need for cyber security as opposed to a decreased need. You see CrowdStrike up over 15 percent here today. What I think is really interesting is the fact that number one, it's banging its head on the top of this channel, that it's been in for really the better part of a quarter and a third here, and you look at what's going on in that momentum indicator down in the bottom panel, starting to break out of this big bearish divergence that it's been in, where price has been going higher, but momentum has been falling off, and so maybe that suggests that this rotation, rather than being just another bounce off the top of the channel, has maybe a little bit more legs to it, Nicole, and the potential to break out of this resistance area here.

SPEAKER_1 (1:43)

All right. Next up, we look at FreightCar, which really has had a tough year. The high was about $15 and it's below $6.57.

What's going on with this big move, big swing from top to bottom? Your thoughts.

Ben Watson (2:01)

Right. Once again, I think this is fear, and FreightCar America has America in the name, and I think that is the consideration that we're starting to see here, is the fear of an ongoing trade war between the US and Canada, where a number of manufacturers exist for this FreightCar and Passenger Rail segment. That being said, the pivot seems to be happening slightly here, a little bit of bullish rotation, a bit of a bullish divergence as this is coming up off of that diagonal trend line.

The potential is therefore to break back up above this 740 and start to move higher. However, 50 period moving average still moving to the downside. But this seems to be maybe the beginnings of a rotational play, if there is an extension of that US. Canada trade war, Nicole.

SPEAKER_1 (2:51)

All right. And I saw Jefferies on the 13th had a buy rating on International Seaways and $108 target and it's on its way. Let's talk about that.

Ben Watson (3:03)

Yeah, it's bouncing once again up against this all time high at the 106 level today, moving right to that level trading right now at 106.45 with some strong. But what I think is important here, not overbought momentum. There is still some room to the upside. We've seen it up and overbought before. It's not there now. It's not on an extreme, which maybe suggests from a technical analysis perspective, that there are still some legs to this uptrend, even though it's moving far above the 50 period moving average.

But look at this, they just paid a $5.05 special dividend, and they're still moving uphill and potentially breaking out. This is all on that increased revenue from increased charter rates for their VLCC tankers, those oil tankers picking up a huge premium to be able to move that oil, and that's going right straight to International Seaways bottom line here, Nicole.

SPEAKER_1 (3:58)

All right, Ben Watson, I wanted to just ask you a final thought here as we're going into the Clarity Act and the Fed meeting. I was noticing Coinbase, for example, is up 8 percent today on the Revised Clarity Act, a new draft that has come out in the last 24 hours and gave a pop to that name. A final thought, big picture for this week.

Ben Watson, thank you so much. Ben Watson, great to see you.