CSCO closes within previous day's range
Cisco Systems Inc. (CSCO) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CSCO finished the week -0.35% lower at 48.85 after losing $0.15 (-0.31%) today on low volume, but still outperforming the Nasdaq 100 (-0.82%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CSCO as at Jan 24, 2020):
Friday's trading range has been $0.93 (1.89%), that's far above the last trading month's daily average range of $0.64. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CSCO.
Notwithstanding a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on December 27, 2019, CSCO lost -0.38% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 49.53 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 48.41 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Cisco Systems. Out of 94 times, CSCO closed higher 59.57% 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 59.57% with an average market move of 0.35%.