In the Lightning Round of Wednesday night's Mad Money program on CNBC, Jim Cramer was bullish on CyberArk Software Ltd. (CYBR) . With this decline in the stock market it pays to look at all stocks, even one that have held up recently. One never knows when the tide has turned. Let's check out the charts and indicators.
In this daily bar chart of CYBR, below, we can see two trends. An uptrend from January to the end of September and then a sideways trend until now. This sideways trend may well continue but we need to watch some key levels. Prices have been finding support around $65 and the rallies have petered out around the $80 area. The daily On-Balance-Volume (OBV) line has been strong the past year and has continued to rise during the current sideways trend. The OBV line can lead prices so that would lead me to anticipate that the $65 support area will hold. $65 is also where the rising 200-day moving average line intersects. The Moving Average Convergence Divergence (MACD) oscillator is in a take profits mode and just above the zero line.
In this weekly bar chart of CYBR, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is still positive but has not made a new high like the daily line. The weekly MACD oscillator has been in a take profits mode since early October but is still above the zero line.
In this Point and Figure chart of CYBR, below, we cna see the sideways trading range. The computer program is suggesting a downside price target of $60. Not all that bad but it would break the support at $65 and the 200-day moving average line.
Bottom line strategy: I feel like you can cut the bearishness in the media/marketplace with a knife. That is one way of saying that the market averages could stage a rebound from here. If the broad market can rebound it should help to keep CYBR above the rising 200-day moving average line.