After a strong rally, the stock gapped down strongly in August, a sign that the big uptrend is over. At the 3rd wave bottom, which at the time i thought to be a C from an ABC correction we had a tripple , both on the lines and histogram, indicating that there might be some up movement. There was up movement, till the report dissapointed strongly. After the gap down following the bad Q3 report, the stock stopped declining at the 20 psychological level, where we also had older support levels, forming what looks like a sharp bottom. Last 3 weeks, i can see some activity.
Considering that Cisco was well correlated with the DOW Jones last years, I expect them to synchronize again, shorting the Dow now would be a bad thing to do, so the alternative is going long Cisco.
If we look at the way the stock moves, I mean the lower lows and lower highs, we notice that this high is exceeding the previous one made after there were some bulls buying after the Q3 report.
The has been giving us signals a week ago, all details outlined on the chart.
IF and only IF we have a close over the blue weekly resistance line, I am going long, first two targets outlined on the chart. However, if we close over that level i expect the stock to go even higher than my targets, but it's a long road till there. First let's see 25 bucks per share
One thing that concerns me in your analysis on this and KO is the reliance on the DJI. Though I don't expect a blowout to the downside, a correction seems eminent -- probably several in 2014. I am generally short-term and that can account for the different set of glasses. Long term the major indices are likely to be higher a year from now -- though unlikely to be up even half as much as 2013. Agree that I would not short the DJI today.