CSCO pops to highest close since June 9th
Cisco Systems Inc. (CSCO) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CSCO ended Tuesday at 47.67 gaining $0.51 (1.08%) on low volume, outperforming the Nasdaq 100 (0.38%). Today's close at 47.67 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 47.36, the share confirmed its breakout through the previous session high after trading up to $0.31 above it intraday.
Daily Candlestick Chart (CSCO as at Aug 04, 2020):
Tuesday's trading range has been $0.76 (1.62%), that's below the last trading month's daily average range of $0.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CSCO.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on June 30th, CSCO lost -1.24% on the following trading day.
After trading down to 46.91 earlier during the day, Cisco Systems bounced off the key technical support level at 47.01 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 48.29 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 47.70 where further buy stops could get activated. Trading close to June's high at 48.29 we might see further upside momentum if potential buy stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Cisco Systems. Out of 416 times, CSCO closed higher 55.29% 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 60.34% with an average market move of 0.87%.