Here’s your trade on CyberArk Software (CYBR) (October 27, 2014)
I want to look at CyberArk (NASDAQ:CYBR ) tonight. This is an Internet, an IT security software company in Israel. This is a recent IPO and they’ve got earnings coming up on November12th. The stock’s rising for various reasons, you can read about all that, but what I see is, the stock’s rising, period. You can see the kind of volume that was just happening today.
This is a stock actually, it might have been more than one person, I don’t really remember, but somebody in our trading forum was talking about it. There have been a lot of good trade ideas in there; I really appreciate it, an awesome job in the forum, both Stock and Option Market Mentor.
Anyway, this stock is now up at a new closing high, it’s been higher here on the second day of trading, up at almost $36.00, but I like the way this volume is happening here. The stock hasn’t been trading that long, we’re just seeing some Bollinger Bands here and they’re actually pretty tight, pretty tight squeeze. And if we go intraday, you just look at this 15-minute chart and you can see that just this morning this had a big blast off and it was on pretty good volume at 10:30.
So here’s what I would suggest, I don’t think it’s too late for you to buy this stock even though you look at it and say, “My gosh, just a few days ago it was down as low as 28.00, now it’s up almost 25 percent in just a few days.” Yes, but something is happening with this stock, they don’t announce again for a couple of weeks now, so we’re going to get plenty of time to see this stock run, I think you can buy it now.
Watch the lows, this is a heck of a percent distance from bottom to top, about 20 percent just today, so it’s really hard to say, “Well I’ll just keep my stop below the last intraday low.” That doesn’t work, instead use this 15-minute chart, you can use whatever chart you want it just kind of has to be intraday. As long as the stock is staying above this 20-period moving average then you’re good to go. You’re never going to get the exact top, so don’t even try to think that. Just use a trailing stop on this as it’s moving higher, that’s for your trade.
If you’re seriously just wanting to invest in IT security, and you know there are a few scumbags out there who are trying to get everybody’s data, then this is a stock you can just hang on to. It’s an IPO, once it starts hitting on all cylinders above this last high of 35.38 I think you’re going to see a lot higher prices. This could be one that you just buy, hold it, tuck it into your long-term portfolio and think about it in about a year.
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