Watch These CoreWeave Price Levels as AI Cloud Stock Soars to Another Record High

Shares in AI darling CoreWeave (CRWV) soared Tuesday, one day after the cloud computing provider and Nvidia (NVDA) partner signed a long-term data center leasing deal with Applied Digital (APLD).

Investors have bid up CoreWeave stock in recent weeks after Nvidia revealed a higher stake in the company than it had previously disclosed and the firm posted first-quarter revenue that grew more than 400% year-over-year amid surging demand for AI infrastructure.

Since the stock went public in late March, it has surged 276% above its initial public offering price of $40. The stock surged 25% to a record closing high of $150.48 on Tuesday, after gaining 8% the previous session, amid a broader upturn for stocks tied to the AI boom.

Below, we take a closer look at CoreWeave’s one-hour chart and apply technical analysis to identify key price levels that investors will likely be watching.

Ascending Triangle Breakout

CoreWeave shares broke out from an ascending triangle on Tuesday that had been in play since late May, possibly paving the waying for a continuation move higher. Importantly, the move occurred on above-average volume, signaling buying conviction by larger market players, such as institutional investors and hedge funds. 

While the relative strength index confirms bullish price momentum, the indicator also flashes extreme overbought conditions in the stock, which could lead to short-term profit-taking.

Let’s apply bars pattern analysis to predict where CoreWeave’s price may be headed next and also identify support levels worth watching during potential retracements. 

Bars Pattern Analysis

Bars pattern analysis analyzes prior trends on the chart to project how future directional moves may play out. When applying the tool to CoreWeave’s chart, we extract the price bars comprising the stock’s strong rally that followed a mid-May pullback and overlay it from the ascending triangle’s breakout point. 

The analysis forecasts a potential upside target of around $200 and indicates the move higher may last until early next month if a similar trend emerges.

Key Support Levels Worth Watching

During profit-taking, investors should initially watch the key $122 level. This location on the chart would likely provide strong support near the ascending triangle’s top trendline, which may flip from a region of prior resistance into future support.

The bulls’ inability to defend this level could see the shares retreat to around $97. Investors may seek entry points in this area near the low of the ascending triangle, which also closely aligns with a minor peak last month that preceded a brief dip in the stock.

Finally, a deeper retracement in the stock opens the door for a retest of lower support at the $73 level. CoreWeave shares may attract buying interest in this area around the high of a mid-May rally and nearby 200-day moving average.

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As of the date this article was written, the author does not own any of the above securities.