CyberArk Software Ltd. (CYBR) has been trading sideways for the past four to five months and it now looks poised to break out to new highs. Let's examine some charts and indicators before I tell you where to buy it and where it may rally to.
In this daily bar chart of CYBR, below, we can see that CYBR just about doubled in price this year. After a rally from near $40 in January to over $80 in early October it should be no surprise that we see prices take a breather with some sideways price action. CYBR has been trading around the 50-day moving average line which is now bottoming. The 200-day moving average line has been rising for nearly the whole year and a decline in November was the only pullback that could be considered a test of this longer-term indicator. The daily On-Balance-Volume (OBV) line has been going up all year - even when prices turned sideways. This rising OBV line tells me that buyers of CYBR have been more aggressive the entire year. The OBV line can lead prices so the new high in the OBV line this month could be foreshadowing new price highs soon. The Moving Average Convergence Divergence (MACD) oscillator in the lower panel gave two cover shorts signals in November and crossed above the zero line this month for an outright go long signal.
In this weekly bar chart of CYBR, below, we see a bullish set up. Prices are above the rising 40-week moving average line and the weekly OBV line is right at a new high for the move up. The weekly MACD oscillator is above the zero line and poised for a bullish cross to the upside.
In this Point and Figure chart of CYBR, below, we can see a bullish accumulation pattern with an upside price target of $100 being projected.
Bottom line strategy: with the daily and weekly OBV lines at new highs I suspect that the price of CYBR will soon follow and break out on the upside. Aggressive traders could long CYBR at current levels and on strength. Risk a close below $71 for now looking for $100 as a price target in the next couple of months.
