Cisco Systems jumped on a strong quarterly report last month. However there’s been little follow-through, which could make some traders feel bearish.
The first pattern on today’s chart is the bullish price gap on February 16 after earnings, revenue and guidance beat expectations. Unfortunately for the bulls, CSCO’s high occurred just 19 minutes after the opening bell. Was that as good as it gets?
Second, prices have been trapped inside the big weekly candle created by the surge. A break of that tight consolidation could give way to sharper movement.
Next, MACD shows momentum sputtering over the last month.
Fourth, CSCO has tried to remain above its 21-day exponential moving average (EMA) but is now at risk of slipping below it.
Finally, traders looking to the downside may eye the February low of $46.43 as a key level. It would also be the bottom of a price channel potentially forming along the recent highs and lows.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the bullish price gap on February 16 after earnings, revenue and guidance beat expectations. Unfortunately for the bulls, CSCO’s high occurred just 19 minutes after the opening bell. Was that as good as it gets?
Second, prices have been trapped inside the big weekly candle created by the surge. A break of that tight consolidation could give way to sharper movement.
Next, MACD shows momentum sputtering over the last month.
Fourth, CSCO has tried to remain above its 21-day exponential moving average (EMA) but is now at risk of slipping below it.
Finally, traders looking to the downside may eye the February low of $46.43 as a key level. It would also be the bottom of a price channel potentially forming along the recent highs and lows.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.