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Fan Yang

I Just Picked up Some Shares of Cisco (CSCO) at $52

As Cisco Systems $CSCO consolidates, I have been picking up shares first around $54 and then now around $52. I think this area above $49 will be key support for the bullish scenario.

CSCO Daily Chart

(click to enlarge) 

Key Support:
- Cisco Systems has been consolidating since price came up to $57.50. 
- There was a brief break to $58 in July, but price then fell sharply back into the consolidation range. 
- I was anticipating a bullish scenario and scaled in some exposure at $55. 
- But price kept falling. 
- As a long-term bull on CSCO, I find this dip to be an opportunity to buy. 
- I like this $52 area because 1) this is consolidation support, and 2) the 200-day simple moving average is right around $51.
- Furthermore, the RSI is under 30 and price has rallied the last few times when the RSI dipped below 30. However, 2 out of the last 3 times the RSI dipped below 30, price only rallied within the context of consolidation - price came to consolidation higher and retreated.
- Still, I like the prevailing uptrend so buying on a consolidation support is ideal for me. 

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