Is the DarkTrace Share Price Too Cheap to Ignore?

The DarkTrace share price jumped by more than 7% on Tuesday after the company delivered a strong guidance as the cybersecurity industry did well. The DARK stock price is trading at 422p, which is slightly above its all-time low of 373p.

DarkTrace is a highly controversial technology company that went public in 2021. After initially rising to an all-time high of 1,000p, the shares fell by over 62% as investors worried about the company’s business model. A report by a short-seller accused the company of fraud. Since the firm’s biggest shareholder has also been accused of fraud, investors exited the stock.

The DarkTrace share price jumped on Tuesday after the company upgraded its forward guidance. The firm said that its revenue for the year will grow to between 42% and 44%. That was a higher guidance than the previous range of 37% and 39%. The firm also increased its guidance for profit margins. 

Still, there are questions about how the former FTSE 100 company will be able to compete with other bigger cybersecurity companies like CrowdStrike and Fortinet.

DarkTrace share price forecast

The daily chart shows that the DarkTrace share price formed a double-top pattern at its all-time high in 2021. It then tumbled sharply as investors reacted to the stream of weak data. The stock remains below the 25-day and 50-day moving averages. 

It is also below the key resistance level at 540p. A closer look also shows that the stock seems like it bottomed at about 375p. Therefore, the stock will likely have a relief rally in the coming months as bulls target the key resistance at 450p. On the flip side, a move below 375p will invalidate the bullish view.

darktrace share price