CSCO breaks back above 20-day moving average
Cisco Systems Inc. (CSCO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CSCO finished the month -2.47% lower at 46.64 after gaining $0.49 (1.06%) today, underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 46.45, the market confirmed its breakout through the previous session high after trading up to $0.56 above it intraday.
Daily Candlestick Chart (CSCO as at Jun 30, 2020):
Tuesday's trading range has been $0.91 (1.97%), that's slightly below the last trading month's daily average range of $1.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CSCO.
Three candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on May 15th, CSCO actually gained 1.78% on the following trading day.
The share managed to close back above the 20-day moving average at 46.14.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's high at 48.29, upside momentum could accelerate should Cisco Systems mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Cisco Systems. Out of 134 times, CSCO closed higher 57.46% 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 58.96% with an average market move of 0.56%.