Shares of CoreWeave, Inc. (NASDAQ:CRWV) are falling on Thursday. The stock is still in a downtrend and may be headed lower.

The shares have broken a support level. This is a bearish dynamic, and it is why CoreWeave is the Stock of the Day.

Support is a price level at which there is strong demand for a stock. In other words, there is a large number of buy orders.

If a stock is in a downtrend, it is because there isn’t enough demand for the shares. Traders and investors who wish to sell are forced to undercut each other to draw buyers into the market. This forces the shares into a downtrend.

When a stock reaches a support level, the dynamic changes. There are enough buy orders to absorb all of the sell orders. This is why downtrends end or pause when they reach them.

Sometimes stocks rally after they reach support. You can see on the chart that this is what happened with CoreWeave last month when it reached the $92 level.

But now this support has been broken. The shares are below $92.

When support breaks, it can be a bearish dynamic. It shows that the buyers who created the support have left the market. They have either finished or canceled their orders.

With this demand off the market, the stage could be set for a move lower. Once again, sellers will be forced to undercut each other. This could put CoreWeave into a new downtrend.

If it does trend lower, there is a good chance it finds support around $70. This level was support before, and these levels can stay intact for a long time.

Some of the people who sold around $70 now regret doing so because the price is higher. A number of them have vowed to buy their shares back if they can do so at their selling price.

If CoreWeave drops to this level, their buying could create support. The shares may even reverse and head higher.

CRWV Price Action: CoreWeave shares were down 5.15% at $81.27 at the time of publication on Thursday, according to Benzinga Pro data.

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