Chart of the Day: Here's the Critical Price to Watch for CIBR Bulls
Weakness in software names has this ETF reeling though it may be unintentional.
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Will companies now spend less on cybersecurity efforts if AI is taking over the planet? Hardly so, but that is of no consequence to the Nasdaq Cybersecurity ETF (CIBR) , which is a collection of names principally charged with protecting the cyber world from hackers.
Yet some names in the ETF represent different groups as well. Take Broadcom (AVGO) , which is a leader in semiconductor group but is the largest holding in the CIBR. When this stock sneezes, the others catch a cold.
We have not heard of a slowdown in spending in cybersecurity, quite the opposite actually. Cloudflare (NET) reported robust earnings and guidance on Feb. 10, citing more and more invasion of malicious bots that can hamper, delay or disrupt delivery of important data.
Other firms like Palo Alto Networks (PANW) , CrowdStrike (CRWD) and Fortinet (FTNT) do not see much slowdown in spending, yet these stocks have been discounted heavily. That's good for the Pro Portfolio as it gives us a chance to craft an assault and look for more shares on this recent dip in price.
The CIBR chart is clearly bearish, with lower highs and lower lows. Money flow is poor and the MACD (moving average convergence divergence) is on a confirmed sell signal (but trying to turn). A move above resistance at $70 would be critical for turning the trend from bear to bullish.
We like CIBR in TheStreet Pro Portfolio and rate it a One, or "buy now."
More Pro Portfolio:
- Adding to 2 Hard Hit Holdings... and Our Plans for 4 Others
- 23 Portfolio Signals Across 8 of Our Themes
- Weekly Roundup: 'Software-mageddon' Takes the Market on a Wild Ride
At the time of publication, TheStreet Pro Portfolio was long CIBR and AVGO.
