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Cloudflare is also active in another important issue, election security. Prince said our elections are seeing increased threats from a variety of sources and Cloudflare is helping to keep critical infrastructure secured.
We do not have a lot of price history to work with but let's see what the charts of NET look like today.
In this daily bar chart of NET, below, we can see that NET went public in September. With less data to analyze we shortened the moving averages to just 20-days and 50-days. Prices made a new high close on Monday and are above the rising 20-day and 50-day averages. The trading volume began to increase in February and that tells us that more investors and traders are getting involved with the stock. That is a good development as more volume can confirm the price gains.
The daily On-Balance-Volume (OBV) line turned up from early November and tells us that buyers of NET have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in November and this month turned upwards for a fresh outright go long signal.
In this daily Point and Figure chart of NET, below, we used a traditional scaling technique of equal price increments. A trade at $26 will be a new high for the move up and should refresh the uptrend. A potential price target of $37.50 is indicated.
Bottom line strategy: Aggressive traders could go long NET at current levels and on strength above $26. Risk a move below $20 for now and the $38 area is our price target.