Chart of the Day: An Excellent Place to Add Shares of This ETF
Indicators are slowing turning bullish ahead of the price action for one of the ETF names in our portfolio.
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In taking another look at the First Trust NASDAQ Cybersecurity ETF CIBR, we see that it continues to move sideways in a range. The channels are on the chart, well-defined action is contained above $50 and below $55. For the past 10 weeks, the CIBR has been moving in this range, and while that is needed to squeeze out excesses, at some point a breakout needs to occur or the sellers will take control.
But look to the secondary indicators (which support the price/volume chart), it appears the CIBR is ready to make a turn higher. Money flow broke the downtrend line (bottom pane), that is bullish. Moving average convergence/divergence (MACD) is still on a buy signal crossover, momentum remains bullish. Once we see a move above $55, then it is game on!
Some components, like AVGO, PANW and CRWD, recently posted earnings, some good, some bad. But with those catalysts behind us, we may see this ETF start to float with the market. If that move is up, so goes the CIBR (decent correlation to the SPX 500).
We like CIBR here and rate it a two in TheStreet Pro portfolio, which means stockpile on pullbacks. This current one would be an excellent place to add shares.
At the time of publication, TheStreet Pro Portfolio was long CIBR.
