CyberArk Software (CYBR) had a nice turnaround to the upside beginning in February, but it looks like that strength has run its course and prices have become toppy-looking the past two months.
Prices for CYBR, chart above, have made three rally attempts in the past two months. In the third rally, in the second half of August, we can see how volume declined, the On-Balance-Volume (OBV) line declined and the Moving Average Convergence Divergence (MACD) oscillator is in a bearish configuration as it heads toward the zero line and an outright sell signal. Prices are testing the rising 50-day simple moving average line.
This weekly chart of CYBR, above, is mixed from a technical perspective. Prices are above the gently rising 40-week moving average line. The OBV line is flat/featureless and suggests there is little aggressive buying or selling of CYBR. In the lower panel is the Moving Average Convergence Divergence (MACD) oscillator, which has begun to narrow toward a possible liquidate-longs sell signal.
Bottom line: A close below $51 on CYBR is likely to be the straw that breaks the uptrend's pattern and may generate deeper losses to the $44 to $43 area in the weeks ahead.