Keystone highlighted the descending triangle in play for CoreWeave a few weeks ago. You can go back and read that real quick. CRWV loses the baseline of the descending triangle so it is lights out. CoreWeave lost her weave.
The vertical side of the triangle at about November 2025, since top and bottom touches of the triangle are established, is about 70 points and the baseline is at 70 so that takes you to zero. That probably will not happen but the logical last stop is the IPO price and that cluster around 38-ish. Price came down last week to a 40 handle getting close. The descending triangle told you that trouble was coming.
You can see the chart indicators remains weak and bleak, sloping lower, wanting to see lower lows in price on the weekly basis, so the 37-38 is likely on tap during November. Traders and investors long CRWV have buttocks clenched hoping that price recovers. The stochastics are oversold and positively diverged so that provides strength for a bounce and price shows buoyancy off the 40 bottom ending the week at 46.
Let's take a quick look at the daily chart. Price makes matching lows the last couple days and the chart indicators are all set up with possie d wanting to bounce price on the daily basis. The MACD is playing coy so it may want to complain for a day or so before price recovers. The happy set-up for longs on the daily chart will marry the happy stochastics on the weekly chart to create a few days of upside joy.
However, as the chart above shows, the indicators remain weak and bleak wanting further lows on the weekly basis. If you want to buy it on the long side to try and catch a falling knife, you can buy it now for the rally in the daily time frame but only for a short trade that lasts a few days or week or two. At that time price is going to roll back over to the downside until the chart above can set up with possie d across all its indicators. That is probably a couple-three weeks away so if you want to buy CRWV and want to hold it a long time, it may be best to let it keep finding its bottom on the weekly chart; that will tell you when to buy.
The 2-hour chart is also set up with possie d so she wants to bounce technically for the coming days and week or so but then roll back over because of the negativity in the chart above. Keystone is not in CRWV long or short since it is a psycho stock but may play it as described. Data centers, we hardly knew ye.
Everything was groovy for CoreWeave puffing its chest out as a big dog player in the data center buildout arena. However, larger companies have the money to fund such ventures but CRWV is but a two-bit opportunist taking on mountains of debt to fund the data center projects. Now many projects are put on hold due to the change in leadership in Washington, DC.
For the US mid-term elections, the republicans were beaten like rented mules. The democrats took over both houses of Congress (House and Senate) repudiating the orange-headed carnival clown that is lining his own pockets instead of helping with the affordability problem. The have's do not care about the have-not's. Get with the program.
Analysts and pundits say existing data center projects will continue but ones not yet approved may face a struggle going forward. They do not know. They are talking out of their butt. Keystone has been involved in several engineering projects where a week after an election, the managers call everyone to the conference room to announce that the contract is pulled and the job put on hold. That meant most everyone working on that job is laid off.
Jobs that are ongoing may get skinnied-down. Instead of 12 rows of computer equipment, maybe the shell of the facility is still built as designed but only 6 rows of machines will be placed. There may be engineering changes and all that costs money and time. People are far too rosy about how fast power, refining and chemical plants can be built, as well as data centers. For a large plant, it would take Keystone working with FERC about 18 months before the regulatory demands were satisfied. For any plant, the transformers and other electrical switchgear may require a year or more lead time just to make the units let alone install them.
In short, the luster is off the data center rose. And things can get worse. If you ordered the fancy chips and they are already delivered and collecting dust because the data center is not ready, that is disastrous. The chips are going to be half past their useful life before they are installed. CoreWeave is a canary in the coal mine for data centers. CRWV is picking up its weave off the floor and tries to reattach it to the bald spot. Jane says, have you seen my wig around? Jane Says by Jane's Addiction. Dig the steel drum. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
