CYBR stuck within tight trading range
CyberArk Software Ltd. (CYBR) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
CYBR finished the week 12.24% higher at 77.92 after losing $0.66 (-0.84%) today on low volume, underperforming the S&P 500 (-0.01%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CYBR as at Jan 11, 2019):
Friday's trading range has been $1.54 (1.96%), that's far below the last trading month's daily average range of $3.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CYBR. Prices continued to consolidate within a tight trading range between 75.33 and 78.73 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 77.00 (S1). After having been unable to move above 78.73 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 78.58. The last time this happened on Wednesday, CYBR actually gained 1.63% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 78.73 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 75.33 where further sell stops could get triggered. 2018's high at 84.21 is within reach and we might see further upside momentum should CyberArk Software manage to break out beyond. Further buying could move prices higher should the market test December's close-by high at 79.16.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for CyberArk Software. Out of 579 times, CYBR closed lower 45.08% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 53.02% with an average market move of 0.13%.