Cisco Systems Inc. (CSCO/NASD): general review
28 January 2019, 10:53
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 46.50 |
| Take Profit | 47.50, 48.50, 49.00 |
| Stop Loss | 46.15, 45.50 |
| Key Levels | 42.50, 44.00, 45.00, 46.50, 48.00, 49.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 44.90 |
| Take Profit | 43.50, 42.50 |
| Stop Loss | 46.00 |
| Key Levels | 42.50, 44.00, 45.00, 46.50, 48.00, 49.00 |
Current trend
Cisco shares have strengthened by 6.5% since the beginning of January, updating the monthly high of the middle of last week. At the moment, the issuer quotes are trading at a discount of 5.4% to the December 3-month high. JPMorgan is betting on the strengthening of Cisco’s business in the next few quarters, thanks to government pressure on the company's direct competitor, Huawei.
During the previous week Cisco shares grew by 4.34%. S&P 500 went up by 1.07% within the same period.
Support and resistance
Since the beginning of the year, the company's shares have shown a positive trend. At the moment, #CSCO consolidates near monthly highs. The instrument has the potential to further growth. MACD histogram is in the positive zone and continues to rise, which signals the strength of the buyers. Still, positions may be opened from key levels.
Comparing company's multiplier with its competitors, we can say that #CSCO shares are neutral.
Resistance levels: 46.50, 48.00, 49.00.
Support levels: 45.00, 44.00, 42.50.
Trading tips
If the price consolidates above the resistance level of 46.50, further growth of #CSCO quotes is expected. Potential profits should be locked in by orders at 47.50, 48.50 and 49.00. Stop loss — 45.50.
If the price consolidates below the mirror support level of 45.00, one may consider selling #CSCO. The movement potential is aimed in the area of 43.50–42.50. Stop loss — 46.00.
Implementation time: 3 days.
Cisco shares have strengthened by 6.5% since the beginning of January, updating the monthly high of the middle of last week. At the moment, the issuer quotes are trading at a discount of 5.4% to the December 3-month high. JPMorgan is betting on the strengthening of Cisco’s business in the next few quarters, thanks to government pressure on the company's direct competitor, Huawei.
During the previous week Cisco shares grew by 4.34%. S&P 500 went up by 1.07% within the same period.
Support and resistance
Since the beginning of the year, the company's shares have shown a positive trend. At the moment, #CSCO consolidates near monthly highs. The instrument has the potential to further growth. MACD histogram is in the positive zone and continues to rise, which signals the strength of the buyers. Still, positions may be opened from key levels.
Comparing company's multiplier with its competitors, we can say that #CSCO shares are neutral.
Resistance levels: 46.50, 48.00, 49.00.
Support levels: 45.00, 44.00, 42.50.
Trading tips
If the price consolidates above the resistance level of 46.50, further growth of #CSCO quotes is expected. Potential profits should be locked in by orders at 47.50, 48.50 and 49.00. Stop loss — 45.50.
If the price consolidates below the mirror support level of 45.00, one may consider selling #CSCO. The movement potential is aimed in the area of 43.50–42.50. Stop loss — 46.00.
Implementation time: 3 days.
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