CyberArk Software ( CYBR) caught a buy recommendation here on Thursday from a sell-side firm. Let's check out the charts and indicators of the developer of cybersecurity software to see if CyberArk shares would make for a well-timed purchase.
In this daily bar chart of CYBR, below, I see a choppy to lower trend the past year. Prices have turned lower in December and trade below the declining 50-day moving average line and below the weak 200-day line. Trading volume looks slightly elevated in the past two months, suggesting that investors are voting with their feet. The daily On-Balance-Volume (OBV) line shows a decline from late October, telling me that sellers of CYBR are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of CYBR, below, I see a weakening picture. Prices have put in a top up around $200 in late 2021. CYBR has worked lower and now trades below the declining 40-week moving average line. The weekly OBV line shows slow weakness since early 2022. The MACD oscillator just moved below the zero line for another outright sell signal.
In this daily Point and Figure chart of CYBR, below, the $108 area is shown as a possible downside price target.
In this weekly Point and Figure chart of CYBR, below, a price target of $87 is indicated.
Bottom line strategy: Fundamental analysts can justify buying a stock in a downward trend because it is "undervalued," but a technical analyst wants to buy stocks that are going up. The charts of CYBR are still going down, so traders should avoid the long side of CYBR for now.
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