CSCO breaks back above 20-day moving average
Cisco Systems Inc. (CSCO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CSCO finished the month 0.99% higher at 47.10 after gaining $0.66 (1.42%) today, slightly underperforming the Nasdaq 100 (1.78%). Trading up to $0.53 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 46.46, the share confirmed its breakout through the previous session high after trading up to $0.65 above it intraday.
Daily Candlestick Chart (CSCO as at Jul 31, 2020):
Friday's trading range has been $1.25 (2.69%), that's far above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CSCO.
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 46.54. When this moving average was crossed above the last time on Wednesday, CSCO actually lost -0.58% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 47.70 where further buy stops might get activated. Further buying could move prices higher should the market test June's close-by high at 48.29.
Among the nine 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 139 times, CSCO closed higher 56.83% 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 58.99% with an average market move of 0.56%.