Software Stocks Rally Into Resistance: CrowdStrike, Palo Alto and Key Market Movers to Watch

Software stocks were among Friday's strongest performers, with CrowdStrike (CRWD), Palo Alto Networks (PANW), and MongoDB (MDB) leading the charge. Palo Alto Networks gained 7%, while CrowdStrike pushed through its $250 gap fill and finished near $257.

But a strong rally doesn't automatically mean there's more upside ahead. In fact, both CrowdStrike and Palo Alto are approaching technical resistance levels where sellers could begin stepping back in.

That's the setup heading into next week. Some of Friday's biggest winners are rallying toward potential short opportunities, while several beaten-down stocks are approaching support levels that could attract buyers. The opportunity isn't necessarily in following the day's momentum. It's in identifying where that momentum is likely to face its next test.

CrowdStrike (CRWD) Technical Analysis: $261.21 and $263.19 Resistance Levels

CrowdStrike has staged a sharp recovery after pulling back from its all-time high to approximately $221. During that decline, price briefly pierced below the midpoint of a parallel channel before reversing higher.

Friday's rally carried CRWD through the $250 gap fill, a level that had previously lined up with the channel as a potential short setup. With price pushing beyond that resistance and finishing around $257, attention now shifts to the next two levels overhead.

The first is a gap fill at $261.21, approximately 1.4% above Friday's closing price. A sharp move into that level at Monday's open could offer an opportunity to evaluate a short-term fade.

Just above it sits shelf resistance at $263.19.

These two levels are close enough to form a narrow resistance zone, making the $261.21–$263.19 area the immediate test for CrowdStrike.

If buyers push through that zone, the next significant resistance sits at $286.99, where a previous double top formed. Jake gives that level additional weight because CrowdStrike has already experienced a substantial pullback from its highs.

CrowdStrike Support Levels: $233, $227.66 and $206.24

The parallel channel remains important on both sides of the trade.

If CrowdStrike breaks above the channel's upper boundary, a successful retest of that boundary as support would strengthen the bullish case. A move that quickly falls back inside the channel would be less convincing.

On a pullback, the first major support area sits near $233, where the channel midpoint aligns with a previous pivot top.

Below that, Jake is watching a smaller gap at $227.66. A more substantial decline would bring $206.24 into focus as major support, based on a previous large bearish candle.

The immediate question is whether CrowdStrike can clear its nearby resistance or whether Friday's rally has simply carried price into another selling opportunity.

Palo Alto Networks (PANW) Technical Analysis: Broken Trend Line Caps the Rally

Palo Alto Networks gained approximately 7% on Friday, but the most important development wasn't the size of the advance. It was where the stock stopped.

A trend line originating on May 6, 2026, had repeatedly served as support during the stock's previous advance. After a gap lower broke that structure, price attempted to recover.

Friday's rally brought Palo Alto directly back into that former support line, where the advance stalled.

This is a classic example of support turning into resistance. Once buyers lose a previously defended level, that same area can become a place where sellers reenter the market.

Palo Alto did manage to clear its previous $368 pivot top, a constructive sign. However, reclaiming the broken trend line remains the more important technical test.

Palo Alto Networks Resistance: $397–$398 and $432.33

If PANW can push beyond its current trendline resistance, Jake is watching a two-factor resistance zone near $397–$398.

The first factor is a gap fill near $397, created when the stock previously closed at that level before gapping lower.

The second is a prior pivot top around $398.

With both references concentrated in the same area, a sharp rally toward $397–$398 would put another potential fade setup in focus.

Above that, $432.33 marks a previous double top and another resistance level worth monitoring.

The downside levels are more straightforward. Initial support sits at $358.10, followed by a gap fill at $346.88.

For Palo Alto, a sustained move above the broken May trend line would weaken the immediate rejection thesis. Until then, Friday's strong performance still has to contend with overhead resistance.

AST SpaceMobile (ASTS) Stock: $39–$40 Support Could Set Up a Bounce

While software stocks were rallying, AST SpaceMobile presented a different type of opportunity.

ASTS has declined approximately 40% from its early October trading levels, bringing the stock into an area where two technical support factors converge.

The first is a descending trend line that has helped define the stock's recent price structure. After several interactions with that line, price is once again testing the area following a substantial decline.

The second is a horizontal support level near $38.99, originating from a pivot top established in 2024.

Together, these references make the $39–$40 zone an important area for a potential bounce.

The significance isn't simply that ASTS has fallen sharply. It's that the decline has carried price into a recognizable support area with multiple technical references.

AST SpaceMobile Support and Resistance: $35, $31.01 and $47.50

If ASTS breaks below the $39–$40 support zone, Jake's next downside reference sits near $35, where a previous pivot low aligns with a price shelf.

A sharper decline could bring the large gap fill at $31.01 into play.

For the bullish scenario, the first meaningful hurdle is $47.50. That level previously acted as support before price broke lower, making it an important area to reclaim.

Above $47.50, the next major resistance sits at $52.84.

The setup is straightforward: holding the $39–$40 support zone would keep a potential recovery in play, while a confirmed breakdown would shift attention toward $35 and potentially $31.01.

Bloom Energy (BE) Stock: Earnings Selloff Tests Long-Term Trendline Support

Bloom Energy was among Friday's biggest losers, falling approximately 11% to 12% following its earnings release.

The decline came on unusually heavy trading volume. Jake noted approximately 35 million shares traded, compared with a typical session closer to 16 million.

More important than the volume spike was where buyers initially appeared.

Bloom Energy fell into a rising support trend line dating back to December 17, 2025. The line had already been tested three times, making Friday's interaction its fourth significant touch.

Price initially bounced toward $196–$197 before selling off again into the close.

That late-session weakness matters. Buyers responded to the trend line, but they weren't able to sustain the recovery.

Bloom Energy Support and Resistance: $180.90, $197.40 and $219–$220

The long-term rising trend line is the immediate level to monitor heading into Monday.

If Bloom Energy breaks below it, Jake will be watching whether price attempts to reclaim the line from underneath. A failed retest could signal additional downside pressure.

The next horizontal support sits near $180.90.

For buyers to regain some control, the stock would first need to reclaim $197.40, followed by the $219–$220 area associated with the previous session's closing levels.

Bloom Energy's setup is particularly interesting because the earnings reaction has brought price directly into an established technical structure. Whether that structure holds will help determine if Friday's selloff was an exhaustion move or the beginning of a deeper decline.

Western Digital (WDC) Technical Analysis: Bear Flag Signals Downside Risk

Western Digital entered Friday's after-hours earnings event with a potentially bearish chart structure already developing.

Following three consecutive red sessions, price had moved sharply lower before settling into a narrow consolidation. Jake identified that action as a possible bear flag, a pattern that can develop when a stock pauses after a strong decline.

The stock also remains below a previously broken rising trend line originating in October 2025.

That combination puts the focus on whether the consolidation resolves lower or whether buyers can reclaim the broken structure.

Western Digital Support Levels: $309.90 and $300–$305

If the bear flag breaks lower, the first support level Jake is watching is a pivot shelf at $309.90.

Below that, the $300–$305 area aligns with a lower descending trend line, creating another potential support zone where buyers could attempt a bounce.

On the upside, the broken trend line and nearby pivot references put resistance around $414–$415.

A stronger recovery would bring the large gap fill at $441.64 into focus.

Western Digital's earnings announcement adds an important complication. Earnings-driven price gaps can move directly through technical levels, particularly when results or guidance materially change market expectations.

That makes the post-earnings reaction, rather than the pattern alone, the critical development to evaluate before Monday's session.

Nike (NKE) Stock: Bullish Wedge Targets $40 Resistance

Nike offers another contrast to Friday's software rally.

The stock has recovered approximately 15% to 16% from its recent weekly lows and is approaching a short-term descending resistance trend line.

Jake noted that the line has already been tested six or seven times. Repeated tests can weaken resistance as sellers become less effective at pushing price away from the level.

A confirmed breakout would bring the $40 psychological level into focus.

Just above that sits a gap at $40.75, giving Nike another technical hurdle if momentum continues.

Nike Support: $34.72 and the Descending Wedge Pattern

On a pullback, Jake is watching the lower boundary of a longer-term descending wedge near $34.72.

The wedge carries a potentially bullish interpretation, but price still needs to confirm that buyers can break through overhead resistance.

For now, the important sequence is a break of the short-term trend line, followed by a test of $40 and potentially $40.75.

If Nike instead retreats toward $34.72, the lower wedge boundary becomes the next area to evaluate for support.

VIX Rises 2%: Why Market Volatility Matters for Next Week's Trades

Friday's software strength didn't eliminate broader market uncertainty.

The Cboe Volatility Index (VIX) was up approximately 2% during Jake's review, suggesting that demand for volatility protection remained elevated despite gains in several technology names.

That doesn't automatically signal an impending selloff. It does, however, reinforce the importance of evaluating individual chart structures rather than treating a strong session in one group as confirmation that the broader market is clear of risk.

The contrast across Friday's market movers is worth watching.

CrowdStrike and Palo Alto are rallying toward resistance. AST SpaceMobile is testing long-term support after a steep decline. Bloom Energy is testing a rising trend line following an earnings selloff, while Western Digital faces a potential bearish continuation pattern around its earnings event.

Different stocks, different setups, but the same underlying principle: the quality of a trade depends on where price is relative to meaningful technical levels, not simply whether the stock finished the day green or red.

Key Stock Support and Resistance Levels to Watch

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Stock Market Outlook: What Traders Should Watch on Monday

CrowdStrike's $261.21–$263.19 resistance zone and Palo Alto's broken May trend line are two of the clearest near-term tests heading into Monday.

A rejection at those levels would support Jake's fade scenarios. A sustained breakout would change the read and shift attention toward the next resistance zones.

AST SpaceMobile presents the opposite question. Can buyers defend $39–$40 and begin reclaiming $47.50, or does a breakdown expose the lower support levels?

Bloom Energy's rising trend line and Western Digital's post-earnings price action will offer additional clues about whether buyers are willing to defend established technical support.

The lesson from Friday's session isn't that software stocks are too strong or that beaten-down names are automatically ready to bounce.

It's that price location matters more than the size of the move.

A 7% rally into resistance can present a very different setup from a 12% decline into support. Knowing the levels ahead of time allows traders to evaluate the reaction rather than chase the move.

The next signal comes from what price does when those levels are tested.