Cyber Security Likely Long-Term Beneficiary of Consumer Tech Push

Cyber security has returned to the news following the recent U.S. pipeline attacks.

But the funny thing is, it never really went away. Sure, there was a decline and consolidation pre-COVID… and just when it looked to be moving higher, the COVID crash sent it lower once more.

BUT, since the crash lows last March, the Prime Cyber Security ETF (HACK) has more than doubled and has been consolidating for the past several weeks – same goes for First Trust Cyber Security ETF (CIBR).

This isn’t necessarily a buy signal nor is this article meant to be particularly insightful on a short-term trading basis. However, I did want to take a moment to put this sector back on your radar as it may very well return to prominence as the consumer technology push (retail) and work-from home theme (corporate) aren’t going away and security needs will persist.

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Note that the following MarketSmith charts are built with Investors Business Daily’s product suite.

I am an Investors Business Daily (IBD) partner and promote the use of their products. The entire platform offers a good mix of technical and fundamental data and education.

$HACK Cyber Security ETF “weekly” Chart

This is a long-term weekly chart shared here to highlight the big move out of the COVID crash low, as well as the current bullish trend. Consolidation will break up (breakout for a trade) or down (opportunity for intermediate term). Even better to look within the sector to find stocks that are out-performers and industry innovators to buy on pullbacks. Some popular names that come to mind include $CRWD, $NET, $ZS, and $CHKP (value), but do your homework and find winners for your timeframe.

hack cyber security etf trend news analysis chart image may 28 2021

Twitter: @andrewnyquist

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.