CYBR finds buyers at key support level
CyberArk Software Ltd. (CYBR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CYBR ended Wednesday at 101.17 losing $2.12 (-2.05%), strongly underperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 101.41, CyberArk Software confirmed its breakout through the previous session low after trading up to $0.71 below it intraday.
Daily Candlestick Chart (CYBR as at Sep 16, 2020):
Wednesday's trading range has been $3.65 (3.53%), that's slightly above the last trading month's daily average range of $3.47. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CYBR.
Despite a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on July 23rd, CYBR lost -2.85% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 100.70 earlier during the day, the stock bounced off the key technical support level at 100.89 (S1). The failure to close below the support could increase that levels significance as support going forward.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CyberArk Software. Out of 265 times, CYBR closed higher 56.98% 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 58.11% with an average market move of 0.84%.