CyberArk Software Ltd. develops, markets, and sells software-based IT security solutions that protect organizations from cyber attacks in the United States and internationally. The company offers privileged account security solution to secure, manage, and monitor account access and activities. The company offers its products to energy and utilities, financial services, healthcare, manufacturing, retail, technology, and telecommunications industries, as well as government agencies through resellers and distributors.
Take a look at the 1-year chart of Cyber (NASDAQ: CYBR) below with the added notations:
CYBR had been in trending lower before bottoming out in February. Since that bottom, the stock has rallied more than 70%. Now, the $55 level (blue) has become key to higher prices. A break above that $55 mark should lead to another leg up for the stock, and yesterday CYBR broke that level.
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The Tale of the Tape: CYBR has a key level at $55. A trader could enter a long position on a pullback down to that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a break back below $55.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach