Watch These CoreWeave Price Levels as Stock Slips After Announcing $9B Acquisition

Investors will be closely watching CoreWeave (CRWV) shares that slipped Monday, after the Nvidia (NVDA) partner said it will acquire Core Scientific (CORZ) in an all-stock deal for around $9 billion.

The transaction, which hit the Wall Street rumor mill last month, values the Core Scientific stock at $20.40 per share, significantly above the $5.75 per share offer from CoreWeave that the company rejected last year.

The AI cloud provider said the deal will help “future-proof” revenue growth by leveraging Core Scientific’s data center operations. Analysts say that the acquisition will help CoreWeave expand its access to power, which could drive operational efficiency. The two companies have an existing partnership with Core Scientific providing CoreWeave with billions of dollars worth of computing infrastructure.

As of Monday’s close, CoreWeave shares have surged nearly four-fold from their $40 initial public offering (IPO) price and trade more than 200% higher over the past three months amid investors’ enthusiasm for AI-related stocks.

Let’s dial into the technicals on CoreWeave’s four-hour chart to identify important price levels that investors may want to track.

Falling Wedge Pattern Takes Shape

Since setting their all-time high (ATH) last month, CoreWeave shares have consolidated in a falling wedge, with the pattern recently finding support near the 50-day moving average.

Although the stock retraced in Monday’s trading session, the relative strength index (RSI) remains above its 50 threshold to signal neutral price momentum.

Let’s identify two important overhead areas to watch if the stock resumes it bullish uptrend and also locate several key support levels worth monitoring during possible retracements in the stock.

Important Overhead Areas to Watch

A decisive breakout from the falling wedge could see a bullish move toward $187. This area on the chart would likely attract significant attention near the stock’s record high, a level where tactical traders may decide to lock in profits.

The next overhead area to watch sits around $235. We projected this target using the bars pattern tool, a technique that analyzes earlier trends to speculate where the price may be headed next. When applied to CoreWeave’s chart, we take the stock’s initial move higher from late April to early May and overlay its from the rising wedge pattern’s lower trendline. This projects a bullish target of around $235, implying 47% upside from Monday’s closing price.

We selected the prior trend higher as it followed an earlier falling wedge pattern on the chart, providing clues as to how the first leg of a bullish continuation move from a similar chart formation may play out.

Key Support Levels Worth Monitoring

A breakdown from the falling wedge could see the shares initially retreat to around $122. This level may provide support near a brief period of consolidation that formed on the chart just prior to a modest pullback in the stock during late May.

Finally, selling in CoreWeave shares below this price opens the door for a retracement to $97. Investors may seek entry points in this location near the completion of a profit-taking dip, which also occurred in the back half of May.

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