Chart of the Day: One Name May Move the Cybersecurity Group This Week
The sector has stalled out, but the most 'influential' stock in the cybersecurity ETF reports earnings on Thursday.
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We have had some decent earnings reports from pure-play cybersecurity names this quarter, but they have failed to lift the First Trust Cybersecurity ETF (CIBR) . That may change this week after Broadcom (AVGO) reports their latest quarterly results.
Broadcom is the heaviest weighting in the CIBR and has strong influence as to direction. No question Palo Alto Networks (PANW) , Cisco Systems (CSCO) and CrowdStrike (CRWD) carry weight, but Broadcom is the most influential.
The CIBR chart, though, is mixed. The candles are pink/purple, a bearish indication on the GoNoGo composite of indicators. Yet, parabolic stop and reverse (SAR) is bullish and supporting the price, MACD (moving average convergence divergence) is also on a bullish signal, and stochastics (momentum) are rising fast.
The CIBR has hit some resistance here at the 50-day moving average and may decline a bit, but there is a nice uptrend working of higher lows, higher highs that would turn the chart bullish with a couple of closes above $77.
We like 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.
