I noticed a Cup and Handle pattern forming on Cisco Systems - ticker CSCO, on the daily level. What will be my entry points and what are the things to consider:
1. My entry would most likely occur today, 19th of July, since I think that the stock will break from smaller moving averages once the market opens. Those moving averages are 10 and 20, my entry price is sitting at around $52-52.5 price level.
2. Stop loss for this position, in case something goes wrong, will be put at around $49.95 price level, which is just below it's previous low and way below the 10 and 20 moving average line, and around 50MA.
3. My profit point is sitting around $59 price level, but that doesn't mean that I will be exiting my position there. It means that if the price action is strongly acting bearish that I will close my position. If price action is in a strong uptrend, I will surely keep the position open.
4. I am planning on adding to a position at $58 price level, of course, if the price action is going as it should - pointing to a strong bullish move.
I will make sure to update this buy opportunity, but please make sure to do your due diligence when investing.
1. My entry would most likely occur today, 19th of July, since I think that the stock will break from smaller moving averages once the market opens. Those moving averages are 10 and 20, my entry price is sitting at around $52-52.5 price level.
2. Stop loss for this position, in case something goes wrong, will be put at around $49.95 price level, which is just below it's previous low and way below the 10 and 20 moving average line, and around 50MA.
3. My profit point is sitting around $59 price level, but that doesn't mean that I will be exiting my position there. It means that if the price action is strongly acting bearish that I will close my position. If price action is in a strong uptrend, I will surely keep the position open.
4. I am planning on adding to a position at $58 price level, of course, if the price action is going as it should - pointing to a strong bullish move.
I will make sure to update this buy opportunity, but please make sure to do your due diligence when investing.
My stop loss, once the break of the resistance happens will be sitting at around $51.65, which is just below the last low, from where the price moved up.