McKinnon said that identity is at the heart of cybersecurity, and connecting the right people with the right apps is the only way to prevent hackers, malware and ransomware attacks from occurring.
The reason we have so many passwords and so many issues with passwords is because websites and applications are not connected, McKinnon explained. That's why Okta provides an integrated platform that connects employees to everything they need.
Okta currently has over 13,000 customers, but there are many more organizations who need their services. McKinnon estimated their total addressable market at $80 billion.
Let's check and see what the charts look like today.
We looked at OKTA a month ago on Oct. 14 and wrote that, "I like to see patterns play out, but I also try not to tell the market what to do, thus, I would go long OKTA on strength above $260 and $270. Risk to $220."
In the updated daily bar chart of OKTA, below, we can see that traders should be long the shares above $260 and could very soon add to longs above $270. Prices are trading above the 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line has remained very firm and is edging up to a new high to confirm the price gains so far and perhaps foreshadow further gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of OKTA, below, we can see the past three years of price action. Prices have been making higher lows this year as part of what I believe is a large and bullish triangle formation. The shares are trading above the 40-week moving average line but OKTA's slope is not in gear on the upside.
The weekly OBV line has been moving sideways for months now but a new rising trend may have started in early October. The MACD oscillator is bullish in its position above the zero line.
In this daily Point and Figure chart of OKTA, below, we can see a potential upside price target in the $326 area.
In this weekly Point and Figure chart of OKTA, below, we can see a potential upside price target in the $335 area.
Bottom-line strategy: Traders who went long above $260 should continue to hold those positions. Others can go long or add to longs on strength above $270. Risk to $230 now, up from $220. The $326-$335 area is our price target for now.