Cisco Systems has been in a strong uptrend for a long time, completing a five wave formation. Last months we can see an abc correction till the 38.2% fib, around the 200 day moving average.
If we look closely at the top (at wave 5), and look closely at the recent bottom (at wave c), we can see a perfect simetry, a double divergence.
Red lines represent strong support and resistance from the weekly charts. Close support is the blue line.
First target is at the 61.8% fib retracement from the top, and the second target is the actual top.
Remember, this trade is relative to the earnings report and the price action preceding it. If the report comes out good and there is no gap or strong bullish price action, i would be really reluctant toward this trade.
For now the trade is in stand by, waiting for confirmation
If we look closely at the top (at wave 5), and look closely at the recent bottom (at wave c), we can see a perfect simetry, a double divergence.
Red lines represent strong support and resistance from the weekly charts. Close support is the blue line.
First target is at the 61.8% fib retracement from the top, and the second target is the actual top.
Remember, this trade is relative to the earnings report and the price action preceding it. If the report comes out good and there is no gap or strong bullish price action, i would be really reluctant toward this trade.
For now the trade is in stand by, waiting for confirmation