Software is not a hard trade. Here’s my take on Cyberark $CYBR – April 3, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to take a quick look at CyberArk ( NASDAQ: CYBR ).
The software index ( BATS: IGV ), is an ETF, it’s got a lot of, guess what, software stocks in it. It is actually working pretty well. It’s been falling below the 50-day moving average a bit, but generally speaking, it’s just hovering at that level here. If we look at these lines that I drew a while ago, they’re really still quite relevant.
I look at this as a pinching pattern, it is still holding the 50-day moving average. I’m not looking at this as a pending, oh wow, look at that thing go, that’s not what these things do. In an ETF you take the crap with the good stuff too. So they are going to be smoother, by definition it’s mathematics, than any one or two stocks in the ETF.
What we want to do, though, is find the best ones, and the best ones with the most potential. So I look at the software index fund, and it looks pretty good. Then I’m looking through for patterns and this is what I see, I see CyberArk ( NASDAQ: CYBR ) in a really, really nice pinching pattern here as well, along the 50-day moving average.
Just today, I put this back on our Active Trade List, this is an anchored VWAP, which I’m not going to get into now. Let’s just say, it’s good when it’s underneath and it’s bad when it’s on top. I see this stock as one that really is holding this line pretty well. And so I feel comfortable enough buying this stock, and it’s early.
It’s early, no question about it because there is no guarantee that tomorrow we’re going to get this kind of move. This has been drifting sideways for a while, actually for quite a while. But we see again, this pinching thing here. When you see a stock doing this, it just gradually moves into a tighter and tighter range. The way to think about that is, that this is an agreement between buyers and sellers on the fair price.
Buyers are willing to buy the stock at the price that sellers are willing to sell it. You could say, Well, duh, dude, that’s always the case. And you would be right, but that’s not the point that I’m making. The point that I’m making is that it’s pinching into a narrower and narrower range, and volume is drying up.
Yes, there is an agreement on the price and it’s generally about the same thing from one day to the next. But further, it’s getting kind of boring. I don’t get up in the morning and look at CyberArk ( NASDAQ: CYBR ) and say, wow, is this fun? You could do that on a micro strategy or any number of these other super-volatile stocks.
But I look at this as a stock that I’m just going, well you know, I’ll watch it and see if something happens. I’ll set an alert here at, I don’t know what, how about 267.00? Okay so, I’ll set an alert. If and when the stock hits 267.00 I’ll get notified. Then maybe I’ll want to look to buy it. Or I can set an alert at the 50-day moving average and that is, this one here
So if the price hits the 50-day moving average then I’ll know about it. So now I’ve got this thing bracketed. The bottom line is this, as I look at the software stocks, there are a lot of them setting up pretty well, these are just trend continuations. You see these pretty long bases here and these little short ones here.
This is a minor little cup and handle type of thing. This is a big V drop here, and pop. So we are right back to where we want to be on this. I would suggest that you watch this stock and, frankly, you know what, if it breaks out above 270.00, that would be the best time that I can think of to buy it.
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