After suffering through a catastrophic drop in February, CyberArk Software has been moving slowly but steadily up. Once considered a darling of the high-value momentum names, this stock fell upon hard times last year as spending on cyber security software started to slow. Then things really went downhill this winter. It was not a complete surprise. High value names are major sell targets when markets slow.
However, as we see from the chart, the stock began lifting in February and it has been forming a nice bullish channel since then. This is a very positive sign, especially since competitors like FireEye and Palo Alto Networks have struggled to gain strength. Recently CyberArk showed some solid volume, broke out and formed a Morningstar pattern. Momentum indicators are in bullish mode. After Palo Alto’s earnings miss on May 27, we had a good opportunity to get on board with CyberArk. This stock seems to have some upside left, and it looks like it could reach the top of the channel, which is about 10% higher from here.
