CyberArk Software Surges 13.47% On Record Volume As Technicals Signal Strong Uptrend

CyberArk Software (CYBR) surged 13.47% in the latest session, extending its gains to three consecutive days with a cumulative 15.76% advance, closing at $434.48 on exceptionally high volume of 5.09 million shares.
Candlestick Theory
The recent session formed a decisive bullish marubozu candle with minimal upper wick ($434.48 close vs. $452 high), signaling intense buying pressure. This follows two small-bodied green candles on July 25 and 28, confirming a Three White Soldiers pattern near the $375-$380 support zone. Key resistance is now established at $452 (today’s high), with secondary resistance near $407–$408 from early July. Support consolidates at $375–$380, reinforced by multiple bounces in this range since late June.
Moving Average Theory
The current price ($434.48) trades well above the 50-day, 100-day, and 200-day moving averages, confirming a robust uptrend. The 50-day MA (approximating $388) exhibits the steepest slope, reflecting accelerating short-term momentum. Golden crosses persist across all major MA pairings (50>100>200), and the expanding gap between shorter and longer-term averages underscores sustained bullish sentiment. This alignment suggests a strong trend foundation.
MACD & KDJ Indicators
The MACD histogram shows widening bullish momentum as the MACD line accelerates above its signal line. This strength is corroborated by KDJ readings, where the %K line (87) and %D line (82) traverse deep into overbought territory. However, both oscillators lack bearish divergence, implying that momentum may sustain near-term despite overextended conditions. Traders should monitor for potential consolidation or pullback signals given these elevated readings.
Bollinger Bands
Price thrust into the upper Bollinger Band ($418, based on 20-day calculations) with today’s surge, indicating heightened volatility and directional conviction. The bands themselves have expanded sharply after a contraction phase in late July, confirming a volatility breakout. While upper-band tags often precede short-term reversals, the absence of bearish reversal candles suggests continuation potential.
Volume-Price Relationship
Today’s breakout occurred on record volume (5.09M shares), validating the price surge as a high-conviction move. This volume spike contrasts with moderate participation during the preceding two rally days, eliminating doubts about sustainability. Accumulation is further evidenced by elevated volume on key up days in July (e.g., July 9–10 and 23–24), reinforcing buyer dominance near support zones.
Relative Strength Index (RSI)
The 14-day RSI has surged to approximately 78, firmly in overbought territory. Historically, such readings preceded minor consolidations in early July and mid-June. While not an immediate reversal signal amid strong trends, the RSI divergence warning flags potential exhaustion if momentum stalls. This warrants vigilance for bearish confirmation from other indicators.
Fibonacci Retracement
Using the July 24 low ($375.34) and today’s high ($452), key retracement levels are $433.91 (23.6%), $422.72 (38.2%), and $413.67 (50%). Today’s close above 23.6% signals strength, with $422 now serving as a critical pullback buffer. Longer-term Fibs (swing low $230 on August 5, 2024) identify $399.61 and $367.20 as major downside supports if a broader retracement materializes.
Confluence and Divergence Notes
Significant confluence exists between the breakout above $407–$408 resistance (price action), upper Bollinger Band penetration, and volume-confirmed momentum (MACD). The RSI divergence relative to July peaks and KDJ’s overbought extreme presents a cautionary contrast, though unconfirmed by bearish candlestick patterns or MA breakdowns. Should RSI retreat while price holds above $433.91 Fibonacci support, the uptrend may consolidate healthily rather than reverse.