CyberArk Software (CYBR) was reviewed by me way back in August, when it was downgraded by TheStreet.com's quantitative service. My conclusion was that "Bearish charts and a quantitative downgrade are not a good combination. CYBR could trade lower to the mid-$30s over the next couple of months." August turned out to be the low of the move down and the stock struggled until February when it started to soar rapidly. Let's retrace our technical steps and see how we can get back on track.
In this updated daily bar chart of CYBR, below, we can see that price and the On-Balance-Volume (OBV) line have been moving up nicely since the beginning of the year. CYBR is above the rising 50-day moving average line and the bullish 200-day line. At the beginning of March we can see a bullish golden cross of these two moving averages - 50 and 200. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in early February and is poised to cross higher again.
In this weekly bar chart of CYBR, below, we can see that prices have broken out above the July/August highs of 2016 to complete a large base formation. Prices are above the rising 40-week moving average line. The weekly OBV line is bullish and rising as is the MACD oscillator. The initial upside price target from this base measure to around $75-$80.
In this Point and Figure chart of CYBR, below, we can see the breakout over $57.49 and a $69.55 price objective.
Bottom line: CYBR looks like it can head much higher. We have price targets from $69.55 to $80. Traders should look to go long on a shallow dip to $60 risking to $56.
