Darktrace Share Price Forecast: C&H Pattern Points to More Gains

The Darktrace share price popped by more than 9% on Tuesday after the cybersecurity company published the latest trading statement. The stock is trading at 676p, bringing its total market capitalisation to more than £5.1 billion. 

Darktrace earnings

Darktrace is a leading cybersecurity company that works with leading companies like McLaren, Siemens, and Suzuki. It offers a number of services like Enterprise Immune System, Antigena, and Email protection services. It went public in London a few months ago.

The Darktrace stock popped on Wednesday after the firm published strong results. The results showed that its revenue jumped by 41.3% from $199 million to more than $281 million.Its adjusted EBITDA moved from more than $8.9 million to more than $29.7 million.  

The company also upgraded its income for the coming year. It expects its revenue to rise by between 35% and 37%. In a statement, the firm’s CEO said:

“At our first full-year earnings, we are very pleased to report robust financial and operational performance, and strong growth, during the period. In this new era of cyber-threat, Darktrace is helping organizations from every industry sector.”

So, what next for the Darktrace share price?

Darktrace share price forecast

The four-hour chart shows that the Darktrace share price has made a swift recovery after it dropped to 542p in August. Since then, the stock has jumped by more than 25% as investors buy the dip. As a relatively small but fast-growing company, some analysts believe that it could even become an acquisition target.

The stock has risen above the 25-day and 50-day moving averages. It has also formed what looks like a cup and handle pattern that is shown in red. The upper part of the cup is at its all-time high of 785p. It is currently forming the handle section of this pattern. 

Therefore, the stock will likely keep rising now that it has completed the handle section. If this happens, the next key level to watch will be 785p, which is about 17% above the current level. 

Darktrace share price