It is not possible to complain at the message from the broad market on the basis of a time-cycle – and prisperspektiv. The signals have been relatively clear that there is a clear point to be a little careful until you either experience a positive risk/reward, or alternatively, we get new buy signals. Today falls the lot of Cisco that may be starting to get it a bit tedious in the longer term, and who recently delivered a short-term sell signal. Location to go short with a tight timeframe and within tight parameters.
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The first peak in the Cisco delivered just above the critical Gann level at $ 34 on 2 and 21 march. Tops, which later was followed by another a marginally higher intradagstopp on 8 may. A powerful nedställ followed, which the market has now bounced in three waves. It is relatively rarely that a stock or the market will not back down to at least the tune of the first lågpunkten before a final bottom is reached.
From the last local bottom on 18 may, the shares have managed to keep up but during the relatively slagig trading, this is generally not a good sign. The share seems vulnerable at the next opportunity that the sellers may prevail.
We take a look at the daily oscillators, we see how the Slow Stochastic indicator marks a negative divergence in the graph and appears to be about to roll over, which is a potentially leading indicator and in this case a negative one.
It is also a key reversal bar in the graph from Monday, the 26th of June, which given yesterday’s follow-up is considered as a short-term sell signal.
Cisco (daily chart)
The long-term moving 200 day average is horizontal, which indicates a long-term consolidation, at the same time is the 50 day average in a negative trend, which clears to us in the short term can search for short positions.
It looks tough out for Cisco in the near future, which should be able to sue the lågpunkten from may 18 at approximately 30.40 dollars before it possibly may be desirable to target on a bounce. The share can be shortened around yesterday’s close at 31.77 u.s. dollars, with a stop-loss at 32.30 dollars which is just above Monday’s öppningspris. May you wish so it is ideal in this location that the stock opening a little bit up today, then turn down and break the yesterday’s closing. Such a development would produce a very good signal for the negative entry.
The risk with this setup is that a stock or market, for that matter, is relatively strong. But in the case of Cisco, it is actually the opposite that may be appropriate given the heavy nedstället in may. Negative news tends to be a wet blanket for a while after they became famous.
Cisco – an overview
Entrance sell
$31.77
Ticker
CSCO
Målkurs
$30.40
Market
The Nasdaq
Emergency exit
$32.30
P/E (est 2017)
13.2
Latest
$31.77
Direct avk. (est 2017)
3.4 %
