CYBR closes within previous day's range after lackluster session
CyberArk Software Ltd. (CYBR) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
CYBR finished the week 2.44% higher at 128.81 after losing $2.78 (-2.11%) today, strongly underperforming the S&P 500 (-0.58%). Trading $1.22 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, CYBR actually gained 2.54% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CYBR as at May 17, 2019):
Friday's trading range has been $2.85 (2.19%), that's below the last trading month's daily average range of $4.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CYBR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices broke below the key technical support level at 129.58 (now R1), which is likely to act as resistance going forward.
Though CyberArk Software is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 132.93 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CyberArk Software. Out of 130 times, CYBR closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.69% with an average market move of 1.33%.