CSCO closes below its opening price unable to hold early session gains
Cisco Systems Inc. (CSCO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CSCO ended Wednesday at 40.42 losing $0.18 (-0.44%), but still notably outperforming the Nasdaq 100 (-1.67%). Trading $0.45 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $0.78 (1.92%), that's above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for CSCO.
Prices are trading close to the key technical resistance level at 40.64 (R1). After having been unable to move lower than 40.38 in the prior session, the market found buyers again around the same price level today at 40.39. The last time this happened on September 11th, CSCO gained 1.23% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cisco Systems. Out of 489 times, CSCO closed higher 60.12% 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 58.28% with an average market move of 0.97%.