CSCO
CISCO - weekly chart shows renewed strength.Here is one of the surviving dinosaurs of the DotCom era, actually with good fundamental data. Cisco is a core holding of many value funds, even if they do not focus much on tech names. I see further potential this year - plus you don`t see extreme greed topping patterns here ( as in Facebook or Amazon ).
CSCO ShortPennant resistance has held while the support has been weakened by lower low. Pennant pattern is ending. Support is weaker than resistance - expect it to break before resistance falls.
DOW JONES OVERVIEW: CISCO IN MACRO RANGECisco Systems trades in macro range - on 5 and 10 year basis.
Price is now currently trading between 2 key levels. The lower level is combined from 5-year (260 weeks) and 10-year (520 weeks) means and is at about 22. The higher level is combined from upper 1st standard deviations from the same means and is at 27.
Price trading within 1 standard deviation is not trending, thus the range outlined above is lateral
On short term basis the held the lower 1st standard deviation from 1-year mean (264 days), thus failed to enter a downtrend on 1-year basis. However it succeeded in falling below the 1st standard deviation from quarterly mean (66 days), thus it is on a downtrend risk there at the moment.
Overall situation hints that the price is likely to remain in the long term range for observable future (22-27)
CSCO - Retesting after a Break HigherWatch when if it triggers for large volume. The EMA's are headed bullish and bounced off the 50 EMA. The SMA's are headed steadily higher. Stochastics gave a buy signal recently, RSI is slightly overbought and MACD recently is giving a buy signal. BB need to be broken. ADX is around 35 and would agree with the trade if it headed higher if it confirms.
Trigger is $28.48
Stop is $26.28
Target is $33.81
The Tech Stock Trade: Cisco (NASDAQ:CSCO)Yesterday, Cisco (NASDAQ:CSCO) reported earnings. Cisco is one of those old tech stocks, like Yahoo (NASDAQ:YAHOO), Microsoft Corporation (NASDAQ:MSFT) and IBM (NYSE:IBM). One thing they all have in common is the possibility of going lower in the coming days. Also important to note is that the major indices, specifically the S&P500 (NYSEARCAPY), saw some selling after making a new high.
Now, CSCO (NASDAQ:CSCO) has gapped higher and the daily chart is showing a topping-tail on volume. This action on the daily chart is telling us that institutions are selling the stock.
As a technical trader I will play this on the short side after a retrace into the tail to minimize my risk .
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Kristof De Block
Elite Round Table, Pro Trader
