Chart of the Day: A Close Look at the Cybersecurity ETF
CIBR has been strong throughout selling in the software sector and is poised to continue a breakout.
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One thing to notice about the First Trust NASDAQ Cybersecurity ETF (CIBR) is the strong volume trends and price action over the last five months. Since late March, a series of higher highs, higher lows in the chart shows the bullish nature of cybersecurity stocks.
Palo Alto Networks (PANW), CrowdStrike Holdings (CRWD), Broadcom (AVGO) and Cisco (CSCO), among others, have shown decisive leadership in this sector. We have all heard of the hazards of software with AI lurking and the cyber group had been lumped in, probably undeservedly.
We can look to the chart and find that big money is still piling in regardless of what is being printed in the financial media.
Recent action is very constructive. Higher highs and higher lows in the chart is our textbook definition of an uptrend. Momentum slowed down recently, but with the very strong move up this week and a blue candle there is no disputing the bulls are in control.
MACD has turned down but that is only due to a slowdown of the rising moving average. Money flow remains bullish. New highs are likely not far off.
We like the CIBR ETF in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
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At the time of publication, TheStreet Pro Portfolio was long CIBR.
