CRDO has very challenging technicals

Credo Technology Group (CRDO) faces a challenging technical backdrop. The stock developed a broadening trading range from September into December 2025, accompanied by an early December bearish shooting star candle and an upside exhaustion gap. These signals, combined with a potential September 2025–early 2026 relative top versus the S&P 500, suggest a loss of upside momentum.

While the lower end of CRDO’s trading range and the 50% retracement of the April–December rally at 124.70–121.44 held in early January, the ensuing rebound has stalled. Price has struggled to reclaim the zone defined by the 38.2% to 50% retracements of the December–January decline at 158.73–169.25, which suggests a weak rally and a potentially bearish setup.

Continued closes below the deteriorating 13-, 26-, and 40-day moving averages from 145 up to 154 would keep near-term risk skewed to the downside. Under this scenario, CRDO remains vulnerable to a renewed test—and potential break—of the 124.70–121.44 support zone, which could open the door for deeper weakness to the rising 200-day moving average at 115.96 and then toward the 61.8% retracement near 99.65.

Chart 1: Credo Technology Group (CRDO) (top) and relative to the S&P 500 (bottom)