Best of the Week
Most Popular
1.Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017 - Nadeem_Walayat
2.Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017, EU Suicide and Burning Stocks - Nadeem_Walayat
3.Big Moves in the World Stock Markets - Big Bases - Rambus_Chartology
4.The Next Financial Implosion Is Not Going To Be About The Banks! - Gordon_T_Long
5.Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - Nadeem_Walayat
6.Trump Ramps Up US Military Debt Spending In Preparations for China War - Nadeem_Walayat
7.Watch What Happens When Silver Price Hits $26...  - MoneyMetals
8.Stock Market Fake Risk, Fake Return? Market Crash? - 2nd Mar 17 - Axel_Merk
9.Global Inflation Surges, Central Banks Losing Control and Triggered the Wage Price Spiral? - Nadeem_Walayat
10.Why Gold Will Boom In 2017 - James Burgess
Last 7 days
This is About So Much More Than Trump and Brexit - 23rd Mar 17
Trump Stock Market Rally Over? 20% Bear Drop By Mid Summer? - 22nd Mar 17
Trump Added $3 Trillion in Wealth to Stock Market Participants - 22nd Mar 17
What's Next for the US Dollar, Gold and Stocks? - 22nd Mar 17
MSM Bond Market Full Nonsense Mode as ‘Trump Trades’ Unwind on Schedule - 22nd Mar 17
Peak Gold – Biggest Gold Story Not Being Reported - 22nd Mar 17
Return of Sovereign France, Europe’s Changing Landscape - 22nd Mar 17
Trump Stocks Bull Market Rolling Over? You Were Warned! - 22nd Mar 17
Stock Market Charts That Scream “This Is It” - Here’s What to Do - 22nd Mar 17
Raising the Minimum Wage Is a Jobs Killing Move - 22nd Mar 17
Potential Bottoming Patterns in Gold and Silver Precious Metals Stocks Complex... - 22nd Mar 17
UK Stagflation, Soaring Inflation CPI 2.3%, RPI 3.2%, Real 4.4% - 21st Mar 17
The Demise of the Gold and Silver Bull Run is Greatly Exaggerated - 21st Mar 17
USD Decline Continues, Pull SPX Down as well? - 21st Mar 17
Trump Watershed Budget - 21st Mar 17
How do Client Acquisition Offers Affect Businesses? - 21st Mar 17
Physical Metals Demand Plus Manipulation Suits Will Break Paper Market - 20th Mar 17
Stock Market Uncertainty Following Interest Rate Increase - Will Uptrend Continue? - 20th Mar 17
Precious Metals : Who’s in Charge ? - 20th Mar 17
Stock Market Correction Continues - 20th Mar 17
Why The Status Quo Is Under Increasing Attack By 'Populist People Power' - 20th Mar 17
Why the SNP WILL Destroy Scotland, Exit UK Single Market for EU - IndyRef2 - 19th Mar 17
Crypto Craziness: Bitcoin Plunges on Fork Concerns, Steem Skyrockets and Dash Surges Above $100 - 19th Mar 17
What ‘Ice-Nine’ Means for Your Money - 19th Mar 17
Stock Market 4 Year Cycle - 18th Mar 17
The Only Article You Need to Read to Understand the Trump Phenomenon - 17th Mar 17
Janet Yellen Just Popped the Stock Market Bubble - 17th Mar 17
Financial Crisis, Steve Eisman: Smart, Lucky, Abrasive & Now One Of Them - 17th Mar 17
Gold Cup – Horse Racing’s Greatest Show, Gambling and ‘Going for Gold’ - 17th Mar 17
Trader Education Week - Free Event to Help You Learn to Spot Trading Opportunities - 17th Mar 17
$1.4 Trillion of SPX Notionals Due to Expire - 17th Mar 17
Preserving Order Amid Change in NAFTA, U.S. Sovereignty v. WTO - 17th Mar 17
3 Maps That Explain Why Syria Raqqa Battle Will Drag On - 17th Mar 17
Crude Oil Price Outlook 2017 - Video - 16th Mar 17
Dutch and French Electons - Winners are Losers and Left is Right - 16th Mar 17
The Straddle Trade Stock Market Brief - 16th Mar 17
Gold Up 1.8%, Silver Up 2.6% After Dovish Fed Signals Slow Interest Rate Rises - 16th Mar 17
Stocks Get Close To Record High Again As Fed Hikes Interest Rates - 16th Mar 17
Scotland Second Independence Referendum War - SNP Determined to Destroy the UK - 16th Mar 17
Here’s How Pharma Is Using AI Deep Learning To Cure Aging - 16th Mar 17
Stock Market Chaos in the Chicken Coop - 15th Mar 17
Gold and Silver Price Manipulation: The Biggest Financial Crime In History - 15th Mar 17
“Ryancare” Dead on Arrival: Can We Please Now Try Single Payer? - 15th Mar 17
Fanaticism, Stock Market Crash 2017 or Continuation of Bull Market - 15th Mar 17
Stock Market Most Overvalued On Record — Worse Than 1929? - 15th Mar 17
Desperate Saudi Arabia Turns to Asia for Investment - 15th Mar 17
Startups Will Define the Future of US Employment - 15th Mar 17
Fed Rate Hikes, Fiscal vs. Monetary Policy and Why Again the Case for Gold? - 15th Mar 17
SNP Declare Scotland to Commit Economic Suicide Early 2019, 2nd Independence Referendum - 14th Mar 17

Market Oracle FREE Newsletter

Elliott Wave Trading

Cisco Systems (CSCO) Stock Price To Explode Higher in 2016

Companies / Company Chart Analysis Mar 21, 2016 - 02:46 AM GMT

By: Austin_Galt

Companies Cisco Systems Inc (CSCO) is in the business of designing, manufacturing and selling internet protocol-based networking products and services related to the communications and information technology industry. It is listed on the NASDAQ with a market capitalisation of around $145billion. Price last traded at $28.33.


Let’s take a top down approach to the technicals beginning with the quarterly chart.

CSCO QUARTERLY CHART



We can the shellacking price received after the 2000 high at $82. I have added Fibonacci retracement levels of the whole bull market and the 2002 low at $8.12 clipped the 88.6% level. That is a spanking indeed! Price rallied up and found resistance at the 61.8% level before coming back down to just above the 88.6% level where support came in and set up a higher low.

Since then price has been trending up gradually making higher highs and higher lows and in the process setting up what looks to be a massive base from which to explode higher from. This basing period has been going on for over 13 years now so the explosion should be a big one.

The Bollinger Bands show price generally being contained within the upper and middle bands with the recent low dipping just under the middle band. I doubt price will now trade below that low. Instead, I favour price to launch higher shortly as it clings to the upper band. Or better said, the upper band will cling to price as it rockets higher!

I have drawn a Fibonacci Fan from the 2000 high to 2002 low. This shows the 76.4% angle providing resistance at the 2007 high. Price eventually overcame that angle and is now zeroing in on the 88.6% angle. Once price is able to surpass this 88.6% angle it should be up, up and away.

Personally, I currently favour price to make all time highs in the years to come and that would likely set up a bearish divergence on the RSI.

The MACD indicator is currently trending up and marginally bullish.

CSCO MONTHLY CHART


I have added Fibonacci retracement levels of the move up from October 2002 low to the higher high set at $34.24 in November 2007. The first correction in a new bull trend is often deep and that was certainly the case here with price subsequently trading back down to $13.30 thereby clipping the 76.4% in the process.

The Fibonacci Fan shows the higher low at support from the 88.6% angle and price was then able to trade up above the 76.4% angle which now looks to be providing support. I am looking for one final move down to test the support from the 76.4% angle before price begins to trend up strongly.

The Bollinger Bands show price recently giving the support from the lower band a good workout and has now bounced back above the middle band. I suspect one last test of the lower band is still ahead of us. Let’s see.

The RSI has bounced back up bullishly into positive territory while the MACD indicator looks very close to a bullish crossover.

CSCO WEEKLY CHART



The RSI is looking strong although it has entered overbought territory while the MACD indicator is bullish but may need a break shortly.

The Bollinger Bands show price surging towards the upper band and once that has occurred I favour a move back down to at least the middle band.

The 100 period moving average (red) is above the 200 period moving average (black) signifying bullish conditions.

The Fibonacci Fan shows the recent low around support from the 88.6% angle and price now looks headed for the 50% angle. I favour a pullback shortly and the 76.4% angle looks like a good target to aim for the next low.

I have added Fibonacci retracement levels of the move down and I am looking for price to turn back down near the 88.6% level which stands at $29.42. Perhaps price then pulls all the way back to the 23.6% level which stands at $24.31. It is that low which I think will represent an excellent area to look at entering long positions.

Summing up, I am extremely bullish and once then next major higher low is in place I expect price to explode higher.

Disclosure – I have no financial interest in CSCO.

By Austin Galt

www.thevoodooanalyst.com 

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked as a licensed advisor with a well known Australian stock broker. While there was an abundance of fundamental analysts, there seemed to be a dearth of technical analysts. My aim here is to provide my view of technical analysis that is both intriguing and misunderstood by many. I like to refer to it as the black magic of stock market analysis.

Email - info@thevoodooanalyst.com 

My website is www.thevoodooanalyst.com 

© 2016 Copyright  The Voodoo Analyst - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Austin Galt Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife