CYBR breaks below 20-day moving average for the first time since June 30th
CyberArk Software Ltd. (CYBR) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
CYBR ended Tuesday at 112.15 tanking $7.72 (-6.44%) on high volume, significantly underperforming the S&P 500 (0.36%) following today's earnings report. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on July 13th, CYBR actually gained 2.90% on the following trading day.
Daily Candlestick Chart (CYBR as at Aug 04, 2020):
CYBR reported earnings of $0.42 per share before today's market open. With analysts having expected an EPS of $0.26, CyberArk Software Ltd. surpassed market expectations by 61.5%. The company's last earnings report was released on May 13, 2020, when CyberArk Software Ltd. reported earnings of $0.5 per share beating market expectations by 35.1%.
Tuesday's trading range has been $7.14 (6.17%), that's far above the last trading month's daily average range of $4.19. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CYBR.
CyberArk Software closed below the 20-day moving average at 112.87 for the first time since June 30th.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CyberArk Software. Out of 30 times, CYBR closed higher 66.67% 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 63.33% with an average market move of 0.85%.