The ETFMG Prime Cyber Security ETF provides investors with effective exposure to the investment performance of the Prime Cyber Defence Index. This index is comprised of various companies around the world operating in the cybersecurity space through both software and hardware developments.
The ETF consist of over 50 different companies. The top five holdings are Crowdstrike (~5.4%), Akamai Technologies (~5.2%), Verisign (~5%), Fortinet (~4.9%) and Palo Alto (~4.8%).
Cybersecurity is a critical aspect of technological expansion and innovation as it encompasses the protection of computer systems, networks, and data from unauthorised access, attacks, and breaches.
Technically, the ETF remains above a key support level (see the trendline on the main chart), making it an attractive investment option. Support refers to a price level at which buying interest is expected to be strong enough to prevent the price from declining further. It acts as a floor and is usually a level where buyers are willing to enter the market.
Upside momentum, according to the MACD indicator and Coppock Curve, as well as upwards movement of the On Balance Volume indicator, supports our bullish bias.
Share Information
| Share code | HACK |
|---|---|
| Industry | ETFs |
| Market Capital (USD) | 1.39 billion |
| One year total return | 0.10% |
| Return year-to-date | 8.01% |
| Current price(USD) | 47.58 |
| 52 weeek high(USD) | 51.76 |
| 52 week low(USD) | 40.65 |
| Financial year end | |
| Closing paragraph | The ETF has performed well so far this year but has exhibited a flat performance over a one-year period. We expect moderate price volatility going forward. |
Buy/Sell Rationale
Technical Analysis:
Fundamental view:
| Share Name and position |
STZ - Buy (Continue to hold) |
NCLH - Buy (Continue to hold) |
LIT - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 228.16 | 14.47 | 62.48 |
| Current | 232.14 | 14.48 | 61.56 |
| Movement | 1.7% | 0.1% | -1.5% |
| Summary text |
A bullish megaphone pattern remains of interest. The stock is trading just above its 200-day simple moving average. Upside price momentum supports the bullish trend.
Our profit target is $252 with a trailing stop-loss of $222. Exit the position on 21 June 2023. |
The stock is trading in a narrow price range and is currently testing its 200-day simple moving average. Upward momentum supports the bullish trend.
Our profit target is $18 with a stop-loss of $13. Exit the position on 19 July 2023. |
A falling wedge pattern in a previous uptrend remains intriguing. The stock is trading below its 200-day simple moving average, though recent upside momentum supports the bullish trend.
Our profit target is $71 with a stop-loss of $59. Exit the position on 30 August 2023. |
| Share Name and position |
HLMN - Buy (Continue to hold) |
VXF - Buy (Continue to hold) |
REMX - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 8.01 | 139.26 | 84.60 |
| Current | 7.86 | 136.67 | 80.87 |
| Movement | -1.9% | -1.9% | -4.4% |
| Summary text |
The price is exhibiting repetitive cycles in sequences. The stock dipped below its 200-day simple moving average. Downside momentum is of concern.
Our profit target is $10 with a stop-loss at $7.50. Exit the position on 10 October 2023. |
An incomplete symmetrical triangle pattern is of interest. The ETF dipped below its 200-day simple moving average, though fading downside momentum supports the bullish trend.
Our profit target is $153 with a stop-loss at $134. Exit the position on 2 November 2023. |
A bullish Elliott wave pattern remains of interest. The stock remains just below its 200-day simple moving average. Fading upside momentum is a concern.
Our profit target is $99 with a stop-loss at $79. Exit the position on 21 July 2023. |
