TheTrendLineInvestor

Cyberark - Are You Ready For A Break Out??

NASDAQ:CYBR   CYBERARK SOFTWARE LTD
You are looking at a DAILY chart of CYBR             . Although I like to use weekly charts in my posted ideas, CYBR             recently ipo'd and therefor the daily chart will work just fine for this idea. Please remember that daily charts will give us buy & sell signals that may not last as long as the signals on weekly charts. So keep your eyes on your money...

Cyber Security. That is like music to my ears. There isn't a day that goes by that I don't wonder what the next major computer hack will be. Today I again heard about the guy who claimed to hack into airline computers and control a plane. Let's hope he is not on my flight this week!

It doesn't matter whether we believe any of these hacking reports or not. What matters is these events are being reported on in the media. The reality is that large companies have confirmed they have been hacked. From retailers, to banks, to tech companies. This is a whole new industry.

If you look at the left side of the chart you will see that CYBR             did not pop immediately upon its Initial Public Offering ( IPO             ). It actually languished for a couple weeks before zooming up to about $70. Problem is, it immediately started falling back to reality - the $48 to $50 range. From there, it took a much more leisurely climb to the $69 level. On the way up, it paused around the $60 level.

Yesterday, after a controlled pull back, CYBR             was back down to the $60 level (again). If you take a look at DT 1, you will notice that the price of CYBR             stayed below DT 1 with exception of 3 days and today. I like the chances of CYBR             going higher if it stays above DT 1.

Take a look at DT 2. This downtrend line give us an upper boundary for the CYBR             price action.

One more thing. Notice that back in April 2015 the $60 level was resistance. Now, in May 2015, the $60 level is acting as support.

If you ask me what I am looking for it is "Follow Through". CYBR             needs to continue higher. It needs to close above DT 2. And stay there. But that is only if CYBR             is going to go higher. If CYBR             is going to go lower it has to close below the $60ish level. And stay there.

If CYBR             want to prove itself. It should be able to stay above the $61.60 ish             level from here on out. Any spike up and fall back to the $60ish level would lead me to believe the stock may go sideways for a little bit. When CYBR             gets above today's high, that will be a signal to get long or add to your current position. If all of this happens, $68 to $70 could be the next area it has trouble.

If CYBR             is just sucking people in to go lower, it should drop below DT 1 fairly quickly. Then it will drop below the "resistance becomes support" horizontal line. If you don't believe in CYBR             going higher then try your short at the $61.60 ish             level. Use a comfortable stop to control your potential losses. Once below the $61.50 level, it should continue lower. If I am right in what I stated above, you may not have to wait long to see some descent gains from your short. I would look at the "2.5 month uptrend line" as a place where CYBR             may catch a bounce.

Don't forget to look at the 8, 21, 50, 100, & 150 day exponential moving averages (ema). These moving averages are all lined up exactly the way they should be. The only exception is the 8 & 21 ema. The 8 ema is currently below the 21 ema but if CYBR             can hold this price level or go higher, the 8 ema should quickly get back above the 21.

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