CyberArk Software Ltd. (CYBR) is due to report earnings Tuesday, May 14.
How do the charts and indicators look? Let's check.
In the daily bar chart of CYBR, below, we can see prices made a strong upside run from December. But is it now time to become more defensive?
Prices are pulling back this month and could soon test the rising 50-day moving average line. Some market watchers could consider CYBR extended versus it 200-day moving average line.
The volume pattern looks like it has been contracting from the middle of February and the daily On-Balance-Volume (OBV) line has rolled over from the middle of April and made a bearish divergence in May, with a lower or equal peak in the OBV line.
The lower panel shows the 12-day price momentum study, with lower peaks from early March, which is a bearish divergence when compared to prices. A bearish divergence is a leading indicator and not particular good for timing, but it can sometimes foreshadow a downward move in the markets.
In the weekly bar chart of CYBR, below, we can see that prices have roughly tripled in the past three years. CYBR is above the rising 40-week moving average line, maybe too far above it.
The weekly OBV has stalled the past few weeks and is diverging from the new price highs. The weekly Moving Average Convergence Divergence (MACD) oscillator has been narrowing and could cross to a take profits signal in the coming weeks.
In this Point and Figure chart of CYBR, below, we can see a modest downside price target of $115 being projected, but a deeper correction is always possible.
Bottom-line strategy: I have no special knowledge of CYBR's earnings, but the charts and indicators make me cautious.