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Finance,  Technology

When to buy Cyren’s stocks (CYRN) for a profit? A technical analysis (April 2021)

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Note: The information in this article is NOT financial advice.

 

Outline

 

In what follows, you will find conditions under which Cyren’s stock (CYRN) price is likely to rise. Cyren is a cyber security company that uses machine analytics to protect data of other companies, such as their emails. Cyren’s stock (CYRN) prices are plotted over time. Each price point is the average of prices over a day, and the window represents a year. Indicators, such as Bollinger Bands, Volume, RSI, and MACD, will be used to give conditions under which the price is likely to rise. (TD Ameritrade’s thinkorswim platform is used.)

Bollinger Bands

bollinger bands - cyren stocks
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When the Bollinger Bands are placed against the stock prices, a pattern can be observed. This pattern can be used to infer when the stock price is likely to rise and drop. When the stock price touches or crosses the lower band, it eventually hits or crosses the upper band after some time (see image), and vice versa. Sometimes, the price only needs to gets close enough to either the lower or upper band to observe this pattern (see image). When the midline or mid-band of the Bollinger Bands has a positive (upward) trend, the price tends to stay above the midline, and when the midline or mid-band has a negative (downward) trend, the price tends to stay below the midline (see image).

Volume

volume - cyren stocks
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When the price crosses, touches, or nears either the lower or the upper band, there is an uptick in the volume chart (see image). The uptick may occur slightly after the price crosses, touches, or nears the lower or upper band. By an uptick, we mean a rise in the volume, where the volume for the day before and the volume for the day after the uptick are lower than the volume that causes the uptick.

Relative Strength Index (RSI)

rsi - cyren stocks
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Roughly, when the price rises, so does the RSI, and it goes down when the price drops (see image). When the value of the RSI nears 30, the price tends to cross, touch, or near the lower band, and when the value of the RSI nears 70, the price tends to cross, touch, or near the upper band. When the price crosses the upper Bollinger band and stays above it for some time and the upper and lower Bollinger bands are wider apart, the RSI stays above the 70 line for some time (see image). The trend of the RSI graph tends to coincide with the trend of the midline of the Bollinger Bands.

Moving Average Convergence Divergence (MACD)

macd - cyren stocks
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When the price has a positive (upward) trend, the cyan line of the MACD is above the yellow line, the farther apart these lines are (or the more they diverge), the more positive the price trend is. When the price trend turns negative (downward), the cyan and yellow lines meet (or converge) and cross each other, and the yellow line is above the cyan line; the farther apart they are, the more negative the price trend is.

When to buy Cyren’s stocks (CYRN) for a profit?

buy order - cyren stocks
Click on image to open in another window. Thinkorswim’s window has been zoomed in.

On April 13th, 2021, Cyren’s stock price crossed back up the lower Bollinger band, the RSI value was barely above the 30 line, and the cyan and yellow lines of the MACD coincided, which suggests the price could rise, although the negative trend of the mid-band suggests otherwise; in fact, the price slightly nudged above 74 cents (see image) but dropped again. By April 15th, 2021, the price dropped and crossed again the lower band, the RSI value dropped below the 30 line, and the MACD lines diverged with the yellow line above the cyan line, which suggests low momentum and a negative price trend. In fact, on April 16th, 2021, the stock price dropped at 63 cents (see image). Under these conditions, Cyren’s stock price is likely to continue to drop after April 16th. The stock price may rise when the RSI goes up above the 30 line, the MACD lines start converging, the price crosses back the lower band, and the trend of the mid-band becomes positive.

Last Words

After April 16th, 2021, Cyren’s stock price is likely to drop. Until the MACD lines start converging, the RSI value is greater than 30, the price crosses back the lower band, and the trend of the mid-band becomes positive, could the stock price start rising.






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