Artificial intelligence leader Cellebrite (CLBT) is fighting for support at its key 50-day line following last week's rally to new highs. The AI stock is one of the best ideas to watch on Investor's Business Daily's Stock Spotlight screen.
Israel-based Cellebrite is a digital intelligence company that provides tools for law enforcement agencies as well as enterprise companies and service providers to collect, review, analyze and manage digital data.
↑ XIn the latest quarter, reported on Nov. 6, Cellebrite earned 14 cents per share on sales of $106.9 million, year-over-year increases of 56% and 27%, respectively.
"We delivered a strong third-quarter performance that exceeded our expectations thanks to increasing traction with our AI-driven Case-to-Closure platform, the impact of our ongoing investment in market-leading innovation and solid execution on all fronts," Chief Executive Yossi Carmil said in the news release.
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Following a July 17 breakout move past a 12.67 handle entry, the AI stock has rallied nearly 66% from that buy trigger. During that move, the stock found support at its 10-week line a number of times, according to IBD MarketSurge analysis.
That indicates institutions are using the 10-week line as a level to support the stock. Look for that support to continue as the stock pulls back again to that level. However, if the stock breaks the 10-week line in heavy volume, that's a critical sell signal.
The stock's relative strength line hit a new high last week, reiterating the AI stock as a market leader. While it has pulled back during the recent Trump rally, it hasn't flashed any immediate red flags. The RS line measures a stock's price action vs. the S&P 500.
IBD Stock Checkup shows that Cellebrite stock boasts a strong 97 out of a best-possible 99 IBD Composite Rating. That makes the AI stock one of the best ideas to watch right now.
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