CYBR unable to break through key resistance level
CyberArk Software Ltd. (CYBR) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CYBR finished Thursday at 102.97 gaining $0.08 (0.08%) on high volume, slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 102.97 marks the highest recorded closing price since June 10th. Trading $1.00 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CYBR as at Jul 02, 2020):
Thursday's trading range has been $2.33 (2.26%), that's below the last trading month's daily average range of $3.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CYBR.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 103.18 (R1), the share closed below it after spiking up to 104.00 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, CYBR actually gained 4.87% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test June's nearby high at 108.43.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for CyberArk Software. Out of 84 times, CYBR closed higher 58.33% 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 61.90% with an average market move of 0.79%.