Send me real-time posts from this site at my email
Fan Yang

Cisco (CSCO) - failed topping suggests bullish continuation; 34 in sight

Shares of Cisco (CSCO) has been consolidating since July and almost put in a price top. However, it looks like the market did not care for further bearish correction, and looks ready for a bullish continuation scenario.

CSCO 4H Chart 8/24

(click to enlarge)

Bullish market:
- First, we should acknowledge the previaling uptrend in 2016.
- Price has been choppy in the past few months, but still maintained a bullish pattern (higher highs and higher lows.)

Earnings prevented a price top:
- Price action was "topping" as it broke below a common support around 30.37 last week. 
- However earnings came in better than expected. The EPS in Q4 was $0.63, which beat forecasts of $0.60
- The fact that price has since rallied back above the "central pivot" area of the price top - around 30.80 - suggests that CSCO is in a bullish continuation mode .


CSCO Weekly Chart

(click to enlarge)

2008-highs:
- A bullish continuation scenario essentially has CSCO back towards the 2008-highs around 33.50-34.
-  From the weekly chart, this bullish scenario is in-line with the previaling uptrend since CSCO bounced off the key support around 14.00 in 2011. 

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue