Chart of the Day: What Luck, Another Buying Opportunity in Cybersecurity!
Seems every pullback has been a great chance to add more shares.
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Dip-buying opportunities come along less frequently during bearish market phases, but recognizing those times can be quite profitable. Take the First Trust NASDAQ Cybersecurity ETF (CIBR). We have suggested buying this ETF on occasional dips and that has proven to be the right move.
The CBR chart remains bullish, with higher highs and higher lows. We adjusted the channel to make it leaner and more accurate with the price action.
Notice the last few sessions price has fallen but so has the volume, telling us sellers’ conviction is not very high. Making a higher low again here is impressive, and in this mid-$90s area would be a good spot to add more shares.
Cybersecurity stocks have fared well through earnings season, even with a modest correction through the tech sector. When a group shows good relative strength it is notable and figures to be the place investors seek a return when the trend moves from bearish to bullish.
We like the CIBR 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.
