Proofpoint Chart Shows Some Powerful Gains

After falling hard with the rest of the market in December, Proofpoint has made a remarkable comeback on decent turnover. The stock went straight up in January and reached overbought status. Momentum indicators are overbought as well. This tells me that the stock may pull back a bit – but not by much. Despite numerous opportunities for a sell-off, the stock keeps inching up. Notice the steep RSI in the top pane.

Resistance is modest, so this is a great time to buy some options. I expect the stock will move to October highs (around 108) after a brief consolidation. That represents a nice 12% gain from where the stock is currently sitting.

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