The cyber security sector has been under pressure since the middle of last year, and a number of the big names in the space have seen considerable selloffs since that time. The Purefunds ISE Cyber Security ETF (HACK) - Get Report  was down 40% at its February low this year but managed to consolidate in what became a cup and handle formation below rim line resistance in the $24 area. This is considered a reliable basing pattern, and resistance was retested in Wednesday's session.

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The relative strength index on this timeframe has been tracking higher since the pattern low was made and is above its 21-period average and centerline. Moving average convergence/divergence has made a bullish crossover and is also on an upward trajectory. Chaikin money flow has retaken its signal line and is attempting to hold its centerline, and the accumulation/distribution line is above its signal average. Price momentum has improved -- and with it the level of buying interest. A pattern breakout projects a price target measured by adding the depth of the cup and adding it to the rim line; it targets an objective just above the $28 area, which was resistance for the last four months of 2015.

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Cyber-Ark Software (CYBR) - Get Report is one name in the sector that has completed its consolidation phase and is breaking out of a well-defined pattern. The stock lost over 50% of its value after making its 2015 high and then dropping to its low this year. At that point it began trading in a narrowing range of higher lows and lower highs, a process that formed a symmetrical triangle on the daily chart.

This week, the stock has broken above the declining trend line and closed on Wednesday above its 200-day moving average.

The vortex indicator, which is designed to identify early shifts in trend, made a bullish crossover at the beginning of the month, and the daily MACD, which is overlaid on a weekly histogram of the oscillator, is above its centerline on both timeframes. The money flow indicators have been reflecting serious buying interest since the stock ended its decline and began to consolidate.

HACK is a buy after an upper candle close above the rim line, and CYBR is a long candidate at its current level, in both cases utilizing a trailing percentage stop.

It should be noted that a big name in the sector, Palo Alto Networks (PANW) - Get Report  , reports earnings after the close on Thursday, and those results will impact the entire space.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.