CSCO surges, gaining $1.59 (3.6%) within a single day
Cisco Systems Inc. (CSCO) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CSCO ended the week -5.03% lower at 45.71 after surging $1.59 (3.6%) today, outperforming the Nasdaq 100 (2.77%). This is the biggest single-day gain in over six months. Trading up to $0.47 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 20th, CSCO gained 1.74% on the following trading day. Closing above Thursday's high at 45.60, Cisco confirmed its breakout through the previous session high after trading up to $0.25 above it intraday.
Daily Candlestick Chart (CSCO as at Oct 12, 2018):
Friday's trading range has been $1.39 (3.09%), that's far above the last trading month's daily average range of $0.82. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CSCO.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to break above the 100-day moving average at 44.81 today for the first time since August 7th. Prices are trading close to the key technical resistance level at 46.43 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 47.72.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Cisco. Out of 107 times, CSCO closed higher 64.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.07% with an average market move of 0.16%.