As expected the index went sideways to downward. It is currently trading in a very narrow channel, between the 65 day MA (4180) and the resistance connecting the previous highs. The last trading day last week saw a black candle accompanied with large value turnover and because of this, I believe that it won’t be long that the 65 day MA would be broken and we would see the index moving downwards towards support at 4090. Do observe if the support holds, if this does hold, then we have an ascending triangle formation for the index which is a good sign.
PCOR has been very bullish since November last year and has been accompanied with large volume. However, this bullishness is now capped by an bearish engulfing pattern on Tuesday last week with substantially large volume and has since started the downward movement for the whole week last week. The MACD is about to cross below the signal line, the RSI as well displays some bearish divergence, the stochastics as well is displaying bearish signs. The weekly chart is also displaying bearish signs, the black candle is accompanied by an almost equal amount of volume from the previous week. So for the coming week, do expect the bearish sentiment to continue and break the support line. Next possible support is at 15 which is the previous low and at the same time the 38.2% Fibonacci level from the start of the run up. Usually when a stock comes from an exceedingly high RSI value, the 50 level usually acts as support so do also watchout for that event for a possible short bounce back up to the support-turned-resistance line, your second chance at getting out if you get stuck by next week
Looking at the weekly chart, LR had a breakout last Friday from a rounding bottom formation. Target price is near 8.00. The stock however is very much overbought so be cautious in trading this stock. Sell on the first sign of weakness or signs of reversal.
CYBR had two significant events last week. Looking at the daily chart, we can see that the recent bullish run saw the stock breaking the very long symmetrical triangle. The target price of the symmetrical triangle is near 1.05 which is now nearly achieved last Friday. The second event is the breaking of a cup and handle formation or a rounding bottom formation seen in the weekly chart, and the target price of this breakout is near 1.50. Do exercise caution in trading this stock as the immediate target price is almost achieved, getting in at this point to capitalize on the breakout of the cup and handle formation is very risky. Wait for the correction before getting in this stock.
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