The chart of CyberArk Software Ltd. (CYBR) has been rolling over since April but support has developed around $120. Let's review the charts and indicators of this stock mentioned by Jim Cramer in a recent column to see if support will hold or whether some further softness is possible.
In the daily bar chart of CYBR, below, we can see a sideways trading range market around $70 from last July to early January. Prices rallied to a high in May, doubling from December. CYBR is trading below the cresting 50-day moving average line but still above the rising 200-day average line.
The daily On-Balance-Volume (OBV) line turned flat from late May telling us that buyers and sellers are in balance. The Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line indicating an outright sell signal.
In the weekly bar chart of CYBR, below, we can see a base pattern in the $40-$55 area that preceded a three-fold markup from early 2018 to now.
The weekly OBV line bottomed in August of 2017 and its rise has helped to confirm the price gains. The MACD oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of CYBR, below, we can see the price action from May (look for the 5 on the chart). A trade below $118.86 is likely to turn the chart bearish.
Bottom-line strategy: CYBR could trade sideways from $120 to $140. A break below $120 will be bearish and a trade and close above $140 would likely be bullish.
