Best of the Week
Most Popular
1. Crude Oil and Water: How Climate Change is Threatening our Two Most Precious Commodities - Richard_Mills
2.The Potential $54 Trillion Cost Of The Fed's Planned Interest Rate Increases - Dan_Amerman
3.Best Cash ISA Savings for Rising UK Interest Rates and High Inflation - March 2018 - Nadeem_Walayat
4.Fed Interest Hikes, US Dollar, and Gold - Zeal_LLC
5.What Happens Next after February’s Stock Market Selloff - Troy_Bombardia
6.The 'Beast from the East' UK Extreme Snow Weather - Sheffield Day 2 - N_Walayat
7.Currencies Will Be ‘Flushed Down the Toilet’ Triggering a ‘Mad Rush into Gold’ - MoneyMetals
8.Significant Decline In Stocks On The Cards! -Enda_Glynn
9.Land Rover Discovery Sport Extreme Driving "Beast from the East" Snow Weather Test - N_Walayat
10.SILVER Large Specualtors Net Short Position 15 Year Anniversary - Clive_Maund
Last 7 days
Gold Short-term Pull Back in Progress - 20th Mar 18
Stocks Appear to be Under Pressure - 20th Mar 18
Time To Eliminate Your Wall Street Tax? - 20th Mar 18
The Beast from the East Snow, UK Roads Driving Car Accidents - 20th Mar 18
Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - 19th Mar 18
2018 Reversal Dates for Gold, Silver and Gold Stocks - 19th Mar 18
This Tech Breakthrough Could Save The Electric Car Market - 19th Mar 18
Stocks Set to Open Lower, Should You Buy? - 19th Mar 18
The Wealth Machine That Rising Interest Rates Create Conflict With The National Debt - 19th Mar 18
Affiliate Marketing Tips and Network Recommendations - 19th Mar 18
Do Stocks Bull Market Tops Need Breadth Divergences? - 19th Mar 18
Doritos Instant £500 Win! Why Super Market Shelves are Empty - 19th Mar 18
Bonds, Inflation & the Market Amigos - 19th Mar 18
US Housing Real Estate Market and Banking Pressures Are Building - 19th Mar 18
Stock Market Bulls Last Stand? - 18th Mar 18
Putin Flip-Flops Like A Drunken Whore On Bitcoin Cryptocurrency Legalization - 18th Mar 18
How to Legally Manipulate Interest Rates - 18th Mar 18
Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - 18th Mar 18
Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - 17th Mar 18
Strong Earnings Growth is Bullish for Stocks - 17th Mar 18
The War on the Post Office - 17th Mar 18
GDX Gold Mining Stocks Fundamentals - 16th Mar 18
Nationalism, Not the Russians, got Trump Elected - 16th Mar 18
Has Bitcoin Bought It? - 16th Mar 18
Crude Oil Price – Who Wants the Triangle? - 16th Mar 18
PayPal Cease Trading Crypto Currency Bitcoin Warning Email Sophisticated Fake Scam? - 16th Mar 18
EUR/USD – Something Old, Something New and… Something Blue - 16th Mar 18
DasCoin: A 5-Minute Guide to How It Works - 15th Mar 18
Stock Market Downward Pressure Mounting - 15th Mar 18
The Stock Market Trend is Your Friend ’til the Very End - 15th Mar 18
6 Easy Ways to Get What Women Want, for Less! - 15th Mar 18
This Isn’t Your Grandfather’s (1960s) Inflation Scare - 15th Mar 18
Eye Opening Stock Market Index, Volatility, Charts and Predictions - 15th Mar 18
Gold Cup At Cheltenham – Gold Is For Winners, Not For Gamblers - 15th Mar 18
Upcoming Turnaround in Gold - 14th Mar 18
Will the Stock Market Make Another Correction this Year? - 14th Mar 18
4 Ways To Writing An Interesting Education Research Paper - 14th Mar 18
China Toward Sustainable Economic Growth - 14th Mar 18
Stock Market Direction Is No Longer Important - 14th Mar 18
Trade Tariffs Defeat Globalists and Return Prosperity - 14th Mar 18
Stock Market Crash is Underway and Cannot be Stopped! - 14th Mar 18
Are Energy Sector Stocks Bottoming? - 14th Mar 18
Nasdaq Stocks Soars to New Record High After Strong Job Reports - 14th Mar 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

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.


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.


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.


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 

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 - 

My website is 

© 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

© 2005-2018 - 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

6 Critical Money Making Rules