Chart of the Day: It Would Be a Crime to Ignore This Position
This ETF has made another run to all-time highs and this time it could break out in a big way.
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With the growing tensions in the Middle East and a pivotal election just around the corner, there is a huge worry about cybercrimes coming to the fore.
A few years back we elected to buy the First Trust Nasdaq Cybersecurity exchange-traded fund CIBR as a way to give us some exposure to the space without necessarily trying to pick the winners. It is hard enough trying to figure that out in a sector that is growing by leaps and bounds, so we went for the entire plate. The CIBR has been a great holding for us.
We also see bigger moves on the horizon.
The chart is strong and reflects bullishness in the price of the CIBR and also strength in volume. Notice at the bottom of the chart the very positive money flow, this is big institutional money piling into the exchange-traded fund. When money flow, as seen in the bottom pane, is strong and the CIBR is rising, it is a very bullish condition. In the second pane on the chart, the Moving Average Convergence Divergence is on a buy signal, and the stochastics are turning up — bullish.
Price action is right back near the highs at $60. So, is this resistance and will it hold? Yes to resistance, but we think this will start making a move above there to surprise the crowd (those who just expect the stock to back away). Look for a move to $72 if that $60 level is cracked.
We like the CIBR here and rate it a Two in TheStreet Pro Portfolio, stockpile on pullbacks.
At the time of publication, TheStreet Pro Portfolio was long CIBR.
