Another look at CyberArk (CYBR) — The pause that refreshes? (November 10, 2014)
I want to take another look at CyberArk (NASDAQ:CYBR ). This was quote the “enthusiasm” high, the stock pushed up against that high, finally broke above it only to break our hearts and pull back. Actually on a percentage basis it pulled back about 5 points, which for a $37.00 stock doesn’t feel very good.
It looks to me like on Friday the stock hit this low, which is a significant low, and now we’ve got a new definition of support, I would say it’s right underneath $32.00. On a percentage basis, if you’re buying now, it’s a wide stop on a percentage basis, but you don’t get to make your own chart, you have to take the one that’s given you. But I think this was a healthy pullback, lets look at the volume, the high volume was in the initial trading. But now you look at this, this was a pretty significant increase in volume over the last couple days and the stock has gone up quite a bit.
So as I look at this I think this is a stock that you can buy right now. Somebody had asked me, is Cyber (NASDAQ:CYBR ) breaking down? It sure looked like it was breaking down, but just keep something in mind when you’re looking at a stock like this; literally what’s the definition of breaking down? Because if this was the high, this is the low, this would be breaking down, falling to new lows or whatever. But that’s not what this did; this literally just pulled back to the 20-day moving average and then gave us a little bounce.
So I look at this little 4-day pullback as letting the steam out, of course it would have been better to buy it right at the low on Friday, but you don’t get to do that. I think this is a stock that you can certainly continue to own. The way this thing is trading it looks to me that this is ready to move to a new high. I think you can buy it now as well, just know that the stock’s below it’s all time high, but this is the way these IPO stocks trade. A lot of times they just kind of flit around this opening high here over the first few days but then ultimately they move a lot higher.
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