NET – Cloudflare Incorporated
Subtitle: Late Breakout Play in a Hot Technology Sector
NET – Cloudflare Incorporated
Subtitle: Late Breakout Play in a Hot Technology Sector
Date: 1 June 2026
Sector: Technology Services / Information Technology Services
Exchange: New York Stock Exchange
TradingView link: https://www.tradingview.com/x/dfxFGKzD/
This stock and sector are clearly in focus right now, with technology-related names continuing to break out. What makes Cloudflare particularly interesting is that it could be a late breakout play.
We have seen other names break out late recently, such as Fortinet, CrowdStrike, Dell, and Intel, before then making rapid moves higher. Cloudflare could behave similarly.
Higher timeframe structure analysis
Looking at the technicals, if I were looking for patterns outside of the pink boxes, this would be a classic cup-and-handle type structure. The larger U-shape forms the cup, and the smaller U-shape forms the handle.
Similar to BNY, I have looked at today; this one has quite clear boxes and structure to work from.
The stock initially floated around $16. After that, it saw a rapid rise, forming a nice series of higher highs, a small period of congestion, and then a push to higher highs, topping out around $218 in November 2021.
After that, we had a much larger U-shaped structure. The stock repeatedly found support around $37, with five or six touches near the bottom of the range. From there, the structure became more constructive, and price gradually worked its way back toward the top of the box before eventually breaking out in October 2025.
Lower timeframe execution analysis
After that breakout, Cloudflare moved into a second pink box and another period of congestion, but this time at a much higher level.
That range sat roughly between $160 and $268. Again, we formed another U-shape, with price touching the lower end of the range three times before resolving higher.
As of 1 June 2026, Cloudflare is now breaking out to all-time highs.
Entry trigger
At this stage, it is still a little early. We have only had one daily close above the all-time high, so I do not want to get caught if it falls back into the congestion zone.
I want to see another two firm closes above this level, giving us three clean closes above the breakout area.
Initial stop loss
Previous four-hour swing low.
Multi-timeframe correlation
3M: Blue candle
1M: Blue candle
1W: Blue candle
1D: Blue candle
4H: Blue candle
When should I tighten the stop-loss?
Tighten to the last four-hour swing low once price has moved in my favour.
When do I add to the position?
Buy on the next four-hour pullback as an additional position.
Potential target range (daily)
$293 – $370
Activated price targets
2
Am I in this trade?
No
Current return (R multiple)
0R