Looking back on 2017, it is apparent that the need for enhanced cybersecurity is growing and that the industry is ripe for innovative solutions. The persistent barrage of news stories of hacked accounts and servers, stolen personal information, ransom for stolen files, and the increasing number of threats from overseas underscore a solid case for investment. As you’ll read in this article, several charts confirm the thesis that now could be an ideal time to buy. (For related reading, check out: 13 Ways to Invest in Cybersecurity.)
ETFMG Prime Cyber Security ETF
With the rise in popularity of exchange-traded products, it is now possible for retail investors to gain exposure to nearly every niche market segment. In the case of cybersecurity, the fund of choice is the ETFMG Prime Cyber Security ETF. The fund comprises 45 holdings and has net assets of approximately $1.2 billion. With an expense ratio of 0.60%, it could be a cost-effective solution for those who don’t want to conduct their own research and would rather have exposure to a diverse basket of companies.
Taking a look at the weekly chart below, you’ll see that the price recently broke beyond the resistance of a channel pattern. This common technical pattern is used by traders to identify periods of consolidation within defined trends and predict when to expect the trend to continue based on the movement beyond one of the trendlines. The recent breakout, shown by the blue circle, suggests that the bulls are in control of the momentum and that the price is likely poised for a move higher over the weeks and months ahead. The recent retracement toward the upper trendline will likely be used as a buying opportunity since it offers long-term traders a more lucrative risk-to-reward ratio. (For more on this topic, check out: 2 Cybersecurity ETFs to Consider.)
Strong uptrends across the cybersecurity industry suggest that now could be a good time to buy. …read more
Read more here: 3 Ways to Trade Cybersecurity in 2018
Category: HACK, SPLK, JNPR