On the red-hot u.s. stock market tracks one after the other the share out of on the upside. Today reports CISCO after the closing, maybe we can get new evidence of a continuation towards the higher elevations already from tomorrow.
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When the market is so hot as it is now, and the number of shares trendar on the hard to get trying to find situations with clear dippar and crime over the significant resistance levels. Cisco is ahead of this evening’s report in such a position. The current price levels around usd 34 has previously been highlighted as important. In the long term is the current level a watershed between the higher rates of up to 43 dollars or a larger break.
Cisco put a peak in the beginning of march and a little later the same month, on the 8th of may com share back to resistance and failed yet again. They say the third time’s the charm but for the american tech company it is, perhaps, the fourth time?
200 day average trendar on the up, and indicates that the long trend is rising. The short 50-day is more or less horizontal, and indicates that we are in a consolidation. It is always good when the averages are confirmed by the pricing structure that, when we look at the show a range from just over $ 34 on the top side to 32 dollars on the downside. A breakage out of the interval indicates the direction of the new trend.
We can also see that we are the latest bottom around the 13th of april, our oscillators were down, the higher the bottom, 30 days later made a higher bottom on the Relative Strength and the Slow Stochastic indicator. Then Gannskolan, we know that two tops or bottoms with 30 day intervals, indicating a possible change of trendriktning. It was therefore a positive signal.
By the reports, shares may move a lot so it is not appropriate to take the position before the report, but instead we hope in regular order in a calm and deliberate response. Preferably, slightly negative in fact, which an establishment above the peaks in march and now in may will be our trigger later in the week or early next week. Shooting share off sharply on the report, we get the refrain, it is important to have a positive risk/reward.
The purchase is proposed at a daily closure above 34.70 dollars, the emergency exit in the form of a stop-loss is a close below $ 34 and the target level is primarily set to 37 dollars, the patient can bet that we reach 40 dollars. In the long term is prismålet on the Cisco closer to 43 dollars, but as high we aim in the current analysis.
From a cycle time perspective, it is difficult to argue that a definitive top would be in place already. The trend is then continued upwards, we’re just waiting for the next signal.
Cisco – an overview
P/E (est 2017)
Direct avk. (est 2017)