CSCO pushes through Wednesday's high
Cisco Systems Inc. (CSCO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CSCO ended Thursday at 40.58 gaining $2.91 (7.72%) on low volume, notably outperforming the Nasdaq 100 (5.72%). Today's close at 40.58 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 39.95, the stock confirmed its breakout through the prior session high after trading up to $0.97 above it intraday.
Daily Candlestick Chart (CSCO as at Mar 26, 2020):
Thursday's trading range has been $3.54 (9.32%), that's above the last trading month's daily average range of $2.81. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for CSCO.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Cisco Systems managed to close back above the 20-day moving average at 37.94. When this moving average was crossed above the last time on Tuesday, CSCO actually lost -2.41% on the following trading day. After having been unable to move lower than 37.50 in the previous session, the share found buyers again around the same price level today at 37.38.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 41.90, upside momentum might speed up should CSCO mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Cisco Systems. Out of 97 times, CSCO closed lower 58.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 57.73% with an average market move of -0.26%.