Chart of the Day (January 08, 2020)
ZS CIBR IGV SAIL ZS
One of the things that some traders in our trading forum were talking about today was software stocks. You can look at CIBR ( NASDAQ: CIBR ), which is an ETF focusing on cyber stocks, and that broke out today. And then IGV ( BATS: IGV ) has been really strong for a while. This was the one that I tend to track but now I am looking at the other one too. A lot of the components in these ETFs were really, really rockin’.
SAIL ( NYSE: SAIL ) is one of them, it broke out above 25.00 today. I like this kind of drifty pattern where the stock just hits 25.00, drifts down for several weeks, squeezes right here and then finally today it squirts out the upside on a high-volume break out above 25.00, so this stock is working. One of the things that I like about it is the moving average configuration, where the 50-day is drifting higher. The 200 is still down but the 50-day is moving higher and it is also above the 200-day moving average so it really is in kind of an early uptrend.
Whereas, if you look at Zscaler ( NASDAQ: ZS ) it has the same kind of price squeeze but, frankly, it is not as clear as SAIL ( NYSE: SAIL ) but I thought I would point both of these out to you. The thing about this is it is just now starting to see the 50-day moving average drift higher. The 200-day is still a ceiling but I think the real ceiling is $60.00. If the stock starts trading above this line that is when it starts filling this gap. I think if the stock can break through this level, about $53.00, I think it has a pretty good chance of going to 60.00 and so that is why I am featuring this. You can say, “Well, $60.00.” Hey man, it’s a $51.00 stock. Do the math; percentage-wise this could be a monster trade, over 15 percent. So you may want to check that out.
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