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CyberArk Could Ride the Wave Higher in the Weeks Ahead

Here's where this cybersecurity stock may be headed and how to trade it.
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Fundamental coverage of CyberArk Software (CYBR) was initiated at Jefferies Friday with a "buy" recommendation. Let's check on the position of the charts and indicators to see if I am on the right track. 

In the daily bar chart of CYBR, below, I can see that the shares have traded higher the past year. CYBR is trading above the rising  50-day moving average line and above the rising 200-day line.

The daily volume histogram shows more active turnover the past three months. The daily On-Balance-Volume (OBV) line shows us a rising pattern since May telling me that buyers of CYBR have been more aggressive than sellers.

The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to the downside as the trend strength has weakened. 

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In the weekly Japanese candlestick chart of CYBR, below, I can see that the three most recent candle patterns have clear upper shadows telling me that traders are rejecting the highs. CYBR is trading above the rising 40-week moving average line.

The weekly OBV line has been rising for the past year and stands at a new high to help confirm the price gains. The MACD oscillator is in a bullish alignment above the zero line. 

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In this daily Point and Figure chart of CYBR, below, I can see an upside price target in the $235 area. 

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In this weekly Point and Figure chart of CYBR, below, I can see a higher price target in the $306 area. 

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Bottom-line strategy: In the short-term CYBR could dip slightly before breaking out to the upside. Aggressive traders could use available weakness to probe the long side risking to $190. The $235 area is my price target for now.

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