Cloudflare (NET) shares traded sharply higher on Friday after its fourth-quarter earnings topped analyst expectations.

The company, which provides services to secure websites and 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) applications🥀, said that it added a record number of large꧋ customers in the quarter and anticipates demand this year will accelerate growth.

Cloudflare shares have jumped more than 30% since the start of the year as of Thursday’s close. This boost comes amid expectations that 澳洲幸运5官方开奖结果体彩网:cybersecurity firms stand to bene⭕fit from growing cyber threats.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Cloudflare’s chart and point out key post-earni꧋ngs price꧅ levels to watch out for.

Cup and Handle Pattern Signals Higher Prices

Cloudflare shares carved out an 11-month 澳洲幸运5官方开奖结果体彩网:cup and handle before breaking out above the pattern’s top trendline late last month, signaling a 澳洲幸运5官方开奖结果体彩网:continuation of the stock’s longer-term uptrend.

After a brief 澳洲幸运5官方开奖结果体彩网:consolidation period, gains look set to accelerate in Friday’s trading session following the company’s better-than-expecte♋d results.

It’s also worth noting that the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) crossed above the 200-day MA last November to form a 澳洲幸运5官方开奖结果体彩网:golden cross, a bu🥃llish chart pattern that confirms the stock’s recent move higher.

Let’s project two potential upside 澳洲幸运5官方开奖结果体彩网:price targets by applying technical analysis and also identify several key 澳洲幸运5官方开奖结果体彩网:support levels worth watching during potential 澳洲幸运5官方开奖结果体彩网:profit taking periods.

Upside Price Targets to Monitor

Investors can forecast upside price targets in the stock by using the 澳洲幸运5官方开奖结果体彩网:measuring principle, a technique that analyzes 澳洲幸运5官方开奖结果体彩网:chart patterns to project future price movements.

Points-Based Target

When applying the technique to forecast a points-based target, we calculate the distance of the cup and handle's cup in points and add that amount to the pattern's top trend༺line. For instance, we add $54 to $116, which projects a target at $170, 20% above Thursdaﷺy’s close.

Percentage-Based Target

To project a p💜ercentage-based target using the measuring principle, we calculate the percentage change of the cup and handle’s “cup” and add it to the pattern’s top trendline value. For example, we apply an 87.1% increase to $116, which forecasts an upside target of $217.04, about 53% above y💎esterday’s closing price.

Key Support Levels to Watch Dur👍ing Profit Taking Periods

During profit taking periods, investors should initially watch the $140 level, a level on the chart where the shares may encounter support near the upper range of this week’s consolidation 澳洲幸运5官方开奖结果体彩网:price action.

Finally, selling below this level could see a retest of the key $116 level, This area would likely attract buying interest near the 50-day MA and cup and handle’s top trendline, which may flip from a region of prior 澳洲幸运5官方开奖结果体彩网:resistance into future support.

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