Technical Analyst, Saxo Bank
Cybersecurity stocks have enjoyed strong uptrend since early 2023, with few exeptions and laggers
Corrections have hit in February/March putting the medium-term bullish picture under pressure.
In this analysis:
Cybersecurity ETF CIBR The technical picture for the biggest cybersecurity ETF's CIBR is explained in details in this analysis.
In addition to that, six of the biggest cybersecurity stocks are covered in the analysis with key support and resistance only. Reason being that the technical picture for each stock is almost similar to the CIBR ETF
Please also check out our Cybersecurity theme on SaxoTrader:
Cyber Security ETF First Trust Nasdaq Cybersecurity CIBR
CIBR is in a short-term corrective downtrend but has recently formed a bottom and reversal pattern (circled) around minor support at 52.45, suggesting the correction may be over.
However, for now the downtrend is intact, and a daily close below 52.45 will most likely fuel another sell-off down to around 50. The strength indicator, RSI, is currently showing negative sentiment with no divergence, suggesting CIBR could drop lower.
On the weekly chart, CIBR is in a medium-term correction phase. The weekly RSI remains in positive sentiment with no divergence, indicating that CIBR is likely to resume its uptrend and move to previous highs and higher after the correction is over.
However, key support at 51.26 must hold. A close below this level will demolish the corrective scenario and turn it into a medium-term downtrend, with downside potential to around 47. The first indication of this bearish scenario possibly playing out would be a daily close below 52.45.
A daily close above 56.57 is required for CIBR to resume its uptrend with upside potential to 62.
Check Point Software Likely to drop to support at 151-147. RSI indicating lower levels. Needs to close above 161.95 to resume uptrend.
Cloudflare After bullish gap early February Cloudflare ahs been sliding back below lower gap boundary at 90.31 and in to negative sentiment and trend.
90.31 is now a resistance level but Cloudflare needs to close back above 97.37 to confirm uptrend. A daily close above 90.31 could get buyers trying to push the stock up there
Medium-term Cloudflare has lagged other Cybersecurity stocks. Weekly RSI is bullish however, and if Cloudflare can get back above 97.37 a push higher towards 132 is in the cards.
Fortinet A daily close below key support at 62.63 likely leading to a sell off down to 60-57 support area.
A daily close above 68.86 uptrend will be confirmed
Palantir Tech key strong support at 20.30. Minor resistance at 22.30, a daily close above is likely to establish an uptrend that is confirmed by a daily close above 24.10
Palo Alto Networks key strong support at around 261.74, a daily close below is likely leading to a sell-off down to around 234.
A daily close above could be an indication of Palo Alto is building an uptrend.
An RSI close above 60 will confirm that scenario which could lift the stock to test the gap area 317.40
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.