CyberArk Software (CYBR) was given a new Outperform rating at RBC (Royal Bank of Canada) here on Tuesday with a $175 price target. Let's review the charts and indicators of the identity software firm to see if they are on the same page as the analyst.
In this daily bar chart of CyberArk below, I can see a very choppy sideways trading pattern the past 12 months. Prices have been finding buying interest (support) in the $120-$115 area since June. CYBR currently trades below the 50-day moving average line and below the 200-day moving average line. The trading volume has been hard for me to interpret, but I do notice an increase in activity in April as CYBR made its most recent pullback. The On-Balance-Volume (OBV) line shows weakness from early March, telling me that sellers of CYBR have been more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory.
In this weekly Japanese candlestick chart of CYBR, below, I notice a number of lower shadows at/below $120. This tells me that traders are rejecting the lows below $120. Prices are in the $120 area again and I suspect traders could again reject the lows. The OBV line shows some improvement from early January. The MACD oscillator is slightly below the zero line.
In this daily Point and Figure chart of CYBR, below, I can see the software is projecting a potential downside price target in the $111 area.
In this weekly Point and Figure chart of CYBR, below, I can see a more bearish downside price target in the $63 area.
Bottom line strategy: The four charts of CYBR above are mixed. Support has developed in the $120 area before, but that is no guarantee it will happen again. I would stand aside until we see better buy signals.
