We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of the Cisco Systems, Inc. (CSCO).
I hope you are having a GREAT week !!!
This week I have, what looks to be, a Hot Stock Chart for you !!
CSCO was in a strong up trend, started consolidating, and then made a big gap up, which means supply over took demand in a big way which is bullish.
CSCO was on a daily and weekly green Trade Triangle before the gap up (daily and weekly Trade Triangles not shown on chart) and put in a monthly MarketClub Trade Triangle on the gap up which is more bullish action.
With stocks we use the monthly Trade Triangle for trend and the weekly Trade Triangle for timing.
The Directional Movement Indicator shows that CSCO is in a strong up trend which fits right in with what the MarketClub Trade Triangles are saying.
If you are looking for a stock with great upside potential, I think CSCO is definitely a Chart to Watch.
Thanks,
Jim Robinson
Profit Trading.com
I have owned CSCO since the late 1990s, and following the tech bust in 2000 CSCO has done squat. Every time Jim Chambers (CEO) opens his mouth at earnings release the stock tanks. This is the first time in many years in which CSCO has gone up significantly following earnings. The key to CSCO getting back to its glory days of growth is to get rid of Jim Chambers and get fresh ideas. Down sizing would also help. I suspect that CSCO will give back all of its recent gains if the market goes into a decent correction this summer.
Yes but it did it on earnings, there is no way to predict this, its a gamble prior to earnings if a stock will go up or down, you can try a strangle with options about a week before earnings based on a companies prior history. Typically a stock will trade up just prior to earnings and than its anyone's guess, but generally after earnings on an established stock it will recover shortly after if it takes a dip or in this case go up and settle down. There are two views to trading around earnings, one is to avoid trading a stock a week prior and two weeks after and the other says to use the trade technique I mentioned above buy prior to its increase, sell before earnings, if it dips buy it again and sell when it recovers. Just my 2 cents.