CYBR breaks back above 100-day moving average
CyberArk Software Ltd. (CYBR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CYBR finished the week -14.37% lower at 118.94 after gaining $0.74 (0.63%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 Feb 14, 2020):
Friday's trading range has been $2.19 (1.84%), that's below the last trading month's daily average range of $4.02. 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 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. Additionally, three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Southern Doji showed up on May 10, 2019, CYBR actually lost -3.58% on the following trading day.
The stock managed to close back above the 100-day moving average at 118.67.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 136.49.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 115.51 where further sell stops might get triggered. Trading close to December's low at 115.14 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CyberArk Software. Out of 396 times, CYBR closed lower 51.26% of the time on the next trading day after the market condition occurred.