Chart of the Day: Cybersecurity Is Providing a Measure of Security
Stocks in the CIBR ETF continue to move upward. Here's what could soon lift it even higher.
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There has been plenty of news around cybersecurity stocks — and not just about security. The group that is part of the First Trust NASDAQ Cybersecurity ETF CIBR, a position in TheStreet Pro Portfolio, has been making waves. Last week it was announced CrowdStrike Holdings CRWD, which is part of the ETF, would be entering the S&P 500, and that stoked a rally in the name this week. CRWD is up more than 15% on that news.
Meanwhile, Broadcom AVGO, a top holding in the ETF, will report earnings on June 12 after the close. The stock has made a huge move upward following strong earnings from names such as Taiwan Semiconductor TSM, Nvidia NVDA and Arm Holdings ARM.
If Broadcom has a big beat and bullish reaction to earnings that could really lift the CIBR ETF above resistance.
The chart above shows that the CIBR is stuck in a sideways consolidation. However, we have seen a recent low tested (beginning of June), and that might just be the launch pad we have been waiting for.
The GoNoGo composite of indicators just turned to cautiously bullish (teal). The most recent color change in October 2023 was the start of a large move up.
Money flow is poor at this point but stochastics are strong here and rising. The Moving Average Convergence Divergence (MACD) just flipped to a buy signal.
We like the CIBR here and this recent consolidation would be a good spot to add more shares. CIBR is rated a Two in TheStreet Pro portfolio.
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At the time of publication, TheStreet Pro Portfolio was long CIBR and NVDA.
