Connect with us

Hi, what are you looking for?

firstmarketscanner.comfirstmarketscanner.com

Stock News

Finding Emerging Leaders within Key Groups

The broader market is fairly mixed with one clear leader: technology. I am also seeing mixed performance within the technology sector and within specific groups. Semiconductors are strong overall, but groups like cybersecurity are more mixed. This makes it a stock pickers market. In such conditions, I am looking for individual stocks that are emerging as leaders. Today’s article will focus on CyberArk Software (CYBR), which was covered this week in ChartTrader.

The chart below shows CYBR breaking out of a falling wedge with a strong advance over the last two weeks. It is an emerging leader because it recently broke the 50-day SMA and exceeded its mid May high (breakout). In addition, the overall pattern and retracement look like a correction within a long-term uptrend. CYBR is well above the 200-day SMA and the decline back to 225 retraced around half of the prior advance, which was a whopping 80%. Thus, we have a two steps forward and one step backward sequence for the long-term uptrend.

The indicator window shows the price-relative (CYBR/RSP ratio) turning up in June and breaking its mid May high. This means CYBR is starting to outperform the broader market again (relative strength). Thus, we have a long-term uptrend and break above the May high on the price chart. We also have a price-relative breakout to signal relative strength. This is a bullish combination.  A strong breakout should hold so I would set a re-evaluation level on a close below 235 (green line).

Looking for more emerging leaders? This past week we covered two more cybersecurity stocks, a semiconductor name with a classic correction and a few healthcare stocks. ChartTrader reports and videos also cover broad market trends with a focus on SPY, QQQ and MAGS. Click here to learn more and gain immediate access.

//////////////////////////////////////////////////

You May Also Like

Stock News

SPX Monitoring Purposes: Short SPX on 9/1/23 at 4515.77; cover short 9/5/23 at 4496.83 = gain .43%. Gain since 12/20/22: 15.93%. Monitoring Purposes GOLD:  Long...

Stock News

It’s summertime, and the living should be easy. Folks do tend to go away in August as the market tends to chop around on...

Business News

Sam Bankman-Fried will head to jail on Friday after a judge sided with a request by federal prosecutors to revoke the FTX co-founder’s bail...

Stock News

With Labor Day weekend behind us, it’s time to get back to the business of following the stock market. As the broader stock market...