Everything was setting up perfectly for CyberArk Software (CYBR) - Get CyberArk Software Ltd. Report  Tuesday morning. After a big stock market decline Monday, the indices were set for a modest bounce on Tuesday. CyberArk's better-than-expected earnings propelled the stock to new highs near the open.

But that's not how it's panned out by midday trading. While the markets have continued to power higher -- the S&P 500 up by 1.2%, the Nasdaq up about 1.5% -- CyberArk has given back most of its gains and is flirting with going negative on the day.

How come?

Earnings of 56 cents per share came in 15 cents ahead of expectations, while sales of $95.9 million grew 33.6% year-over-year and beat analysts' estimates. Further, guidance for both second-quarter and full-year revenue and earnings came in above consensus.

Despite all this, the stock has given up the near-8% gains it toted in pre-market trading and is barely up on the day. Even peers like Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report and Fortinet (FTNT) - Get Fortinet, Inc. (FTNT) Report are up too, up 1.05% and 2.15% on the day, respectively, compared to CyberArk's 1.45% gain.

Is this a buying opportunity for investors or an opportunity to get out ahead of more selling?

Palo Alto Networks is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells PANW? Learn more now.

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Daily chart of CyberArk stock.

The action is reminiscent to Twilio (TWLO) - Get Twilio, Inc. Class A Report , a stock that had a similar post-earnings reaction a few weeks ago and a recent addition to Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.

Following its disappointing earnings reaction, Twilio stock did an excellent job of consolidating above its 50-day moving average and around it 20-day moving average before it began to move higher. Unfortunately, the recent volatility and overall stock market declines eventually hit the stock, although shares reclaimed the 50-day on Tuesday.

Is similar action in store for CyberArk stock? It could be. The stock has been trading in a very strong channel since its February gap up (also on strong earnings). For now, it's failing to hold its 20-day for the second day in a row and the moving average is starting to roll over. That doesn't bode well for short-term momentum.

There are two levels to watch now: The 20-day on the upside and the 50-day on the downside. If CYBR stock closes over the former, $130+ could be in the cards and possibly a run at the highs it hit on Tuesday. If the 50-day fails as support, it may need some time to digest. Immediate support below the 50-day is not clear, although the $107 to $109 area will likely attract some buyers, which is the 38.2% Fibonacci retracement for the 52-week range and 2019 range, respectively.

From the AAP team:

"We believe cyber security to be a secular growth trend that will continue to be a priority for cooperate investments globally in coming years. We value Palo Alto above others because, while firewall spend will continue to be a key factor supporting sales and earnings in the near- to- mid-term, we believe CEO Nikesh Arora's intense focus on cloud security will provide for longer relevance and industry dominance."

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.