CRDO Stage 2 Uptrend Intact but Deep 41% Base Flags Elevated Risk

Posted on by Eben@CANSLIM Research
CRDO daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY, Stage 2 (Advancing), as of August 31, 2026 at 01:06 — CANSLIM Research

CRDO is holding a Stage 2 advance above a rising 30-week moving average, with seven of eight trend-template checks passing. However, the current 10-week base is a deep 41.3% correction, a pattern with an elevated failure rate, and no VCP or bull-flag confirmation has emerged. The overall sentiment remains constructive but cautious, awaiting a decisive breakout above the 302.52 pivot.

As of 2026-08-27 · Close $240.24

Stage 2 (Advancing) — Price holding above a rising 30-week MA — uptrend intact (30-week MA 6-week slope: 9.58%)

⚠️ Faulty cup warning: the base is 41.3% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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