A Potential Broadening Pattern on Cyber-Ark Has Risks and Rewards

Cyber-Ark Software Ltd. (CYBR) was featured on Jim Cramer's Mad Money show last night. In his second "Executive Decision" segment of the evening, Jim had a conversation with Udi Mokady, chairman and CEO of CyberArk Software that reported on Tuesday a 12-cents-a-share earnings beat that included a 56% increase in deferred revenue. Those are the numbers. In addition, theStreet.com's quantitative service upgraded CYBR to a buy today. Hey what about the charts and indicators? Let's check.

In this daily bar chart of CYBR, below, we can see a sideways consolidation pattern from September to early February. Starting in late February CYBR starts an impressive rally with only sideways or shallow corrections. In late July and early August the pattern changes. CYBR declined sharply and broke its June low. Prices managed to bounce to the underside of the 50-day moving average line but then gapped above it and made new highs. The higher highs and lower lows since June could be a broadening pattern. This pattern can be a bullish continuation pattern or a top reversal. CYBR is back above the rising 50-day line again and perhaps too far above the bullish 200-day moving average line. The daily On-Balance-Volume (OBV) line shows a bullish trend from early January and recently made a new high for the move up to confirm the advance. The price action and the volume data are bullish but the 12-day price momentum study shows equal highs in momentum in June and July and a lower high recently in August. When compared to the higher price highs this is a bearish divergence and suggests that the rally is slowing....152 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.