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Cisco Systems (CSCO) Ready for a Bullish Continuation Breakout

Cisco Systems $CSCO has been consolidating since April when price failed to extend beyond $57.50. But after a period of consolidation, price action looks ready for a bullish continuation breakout.

CSCO Daily Chart

(click to enlarge)

Resistance Tested:
- The daily chart shows price consolidating since mid-April.
- However price is still above the 200-day simple moving average (SMA), and the moving averages are still in bullish alignment.
- The RSI however reflects bearish momentum that is still in play. 
- The thing is, this consolidation first came down to the $51-$52 area before finding support. 
- But in June/July, it found support at $54. 
- The fact that we saw strong volume at the end of June and price still held above $54 is a bullish sign for the current rally. 
- With bulls seemingly in charge, I think we will see a bullish breakout very soon. 
- On the other hand, a close below $54 would suggest further consolidation and bearish correction that could extend down to $50 (because it would reflect a failed bullish breakout, which could translate to weakness at least in the short to medium-term.

I do not own any CSCO shares - I had an entry order at $50, but now I am moving it up to $55. 

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