CyberArk Software Ltd. (CYBR) quickly traded lower this month, breaking below the rising 50-day moving average line and turning other indicators lower. Let's inspect the charts to see what strategy makes sense.
In this daily bar chart of CYBR, below, we can see the brief spike up to a new high at the end of September and the quick reversal lower. CYBR cold bounce to the underside of the rising 50-day average line but it is likely to fail. The daily On-Balance-Volume (OBV) line has turned lower and the Moving Average Convergence Divergence (MACD) oscillator is close to crossing the zero line for an outright sell signal.
In this weekly bar chart of CYBR, below, we can see that prices are still well above the rising 40-week moving average line. The weekly OBV line has softened in the past month and the weekly MACD oscillator is crossing to the downside for a take profits sell signal.
In this Point and Figure chart of CYBR, below, we can see an ambitious downside price target of $54.
Bottom line strategy: CYBR is undergoing a correction. We could dip to $65 or $60 or even the Point and Figure target of $54. I want to be a buyer of CYBR but I want to see it stop falling and stabilize first.