CSCO closes above its opening price after recovering from early selling pressure
Cisco Systems Inc. (CSCO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CSCO ended the week 1.42% higher at 44.90 after gaining $0.26 (0.58%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.55 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 May 4th, CSCO gained 0.27% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $0.83 (1.86%), that's slightly below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CSCO.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 45.82 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Cisco Systems. Out of 795 times, CSCO closed higher 50.44% 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 55.47% with an average market move of 0.33%.