CloudFlare rallies - Analysis - 08-08-2022

CloudFlare's sock (NET) surged in the intraday levels after raising full-year forecasts for earnings from $959 to $972 million, beating market estimates of $958.4 million, with the stock surging 27.06%, or 15.81 points, settling at 74.24, with trading volumes surpassing 22.6 million shares, above 10-day averages of 6.4 million shares.

The stock is buoyed by piercing the main downward trend line previously, with support from trading above the 50-day SMA, with positive signals from the RSI despite reaching overbought levels, tackling the resistance of 76.60.

Therefore we expect more gains for the stock, targeting the resistance of 95.77, provided the resistance of 76.60 was breached. 

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Expected trend for today: Bullish