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

Cisco Systems (CSCO) - Anticipating Support Around $40.20

Cisco has been in consolidation since it came up to $46 in March 2018. We can see that price dipped to $40.20 and then rebounded to retest this $46 area again. Although price cracked $46, it retreated. The market was still in consolidation.

CSCO Daily Chart

(click to enlarge)

Double Top or Range:
- Some would say that the twice-resistance around $46 suggest a double top is forming.
- I think the only thing we can say is that price has settled sideways. If price breaks below $40, then we have a double top.
- But at the moment, it is merely a sideways range, with a prevailing uptrend.
- Given this situation, we should then look for support if price comes down to the previous support around $40. 
- I would allow some wiggle space around $40, but if price indeed rebounds and can climb back above $41, I think it would be a good sign that bulls are in control.
- A better bullish sign would be price holding above the 200-day simple moving average (SMA), and above that $41 pivot. 

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