Stock Trading Predictions & Technical Analysis: CSCO

Thursday, October 22, 2009

CSCO - Rising Wedge?

CSCO - WAIT

CSCO currently looks to be in a rising wedge, with the price moving higher along a narrowing channel. Most of the time, near the end of that wedge, when both the support and resistance level get close to collision, the price will break downward. However, I'm not sure if this will happen now. Right now, there are three possibilities: 1) CSCO moves back down towards its support level of $23.50, and bounces back up. If that happens, we can't tell if its bullish or not. If it is bullish it will break up higher towards $25.00, which would give us a BUY SIGNAL. 2) The price moves towards $22.75, and bounces back up, which would give us a BUY SIGNAL. This would be bullish and perhaps the best scenario for the possibility of seeing CSCO continue upwards along its channel. The reason is that if CSCO pullsback to $22.75 at its 50 day MA and bounces back up, the rising wedge will no longer be valid, and instead we will simply have a regular up trending channel. 3) Obviously if CSCO breaks downwards below $22.75 and its 50 day MA, it would be a SELL SIGNAL.

1 comment:

UnknownOctober 22, 2009 at 7:13 AM
Thanks for answer my question.
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TECHNICAL INDICATORS

BUY SIGNAL: Indicates the possibility of the start of a new up trend or the continuation of the current up trend. This signal may be often given in the early stages of a potential new up trend that was preceded by a down or sideways trend. Such signals do not always succeed and may fail at time.

BUY: Indicates that the current up trend is already in motion and a BUY SIGNAL was already given earlier. A BUY does not necessarily indicate that the stock will continue higher from here, but simply that the stock is trending up. The further into the trend you decide to take a long position, the more risk you have of seeing it reverse back down sooner rather than later.

STRONG BUY SIGNAL: Indicates a stronger, more significant and reliable signal than a BUY SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG BUY: Indicates that the current up trend is already in motion and that STRONG BUY SIGNAL was already given.

SELL SIGNAL: Indicates the possibility of the start of a new down trend or the continuation of the current down trend. This signal may be often given in the early stages of a potential new down trend that was preceded by an up or sideways trend. Such signals do not always succeed and may fail at time.

SELL: Indicates that the current down trend is already in motion and a SELL SIGNAL was already given earlier. A SELL does not necessarily indicate that the stock will continue lower from here, but simply that the stock is trending down. The further into the trend you decide to sell a position, the more risk you have of seeing it reverse back up.

STRONG SELL SIGNAL: Indicates a stronger, more significant and reliable signal than a SELL SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG SELL: Indicates that the current down trend is already in motion and that STRONG SELL SIGNAL was already given.

HOLD: Indicates that traders who already hold this stock, should hold on as long as the trend persists. This signal is usually given during an up trend for which it would be considered too risky to take a long position at this point.

STRONG HOLD: Indicates that the current trend has been in motion for a while and rarely deviated away from the trend. Although the stock may continue higher, there may not be enough potential up side to trigger a BUY SIGNAL. This type of indicator usually means that the stock has very strong support levels which may have been tested but not broken.

WAIT: Usually given during a sideways trend for which we are waiting for a move that would trigger a BUY SIGNAL or SELL SIGNAL. This could also indicate uncertainty and the risk that would be taken if you were to take a long position at the current level. Taking a long position after giving a WAIT indicator is considered a gamble.