Cisco Systems is making a nice comeback post-earnings. After the company posted lower than expected guidance, volume levels were elevated as Cisco was pounded. After some tight consolidation, the stock made higher lows and higher highs on the chart. Finally on Monday, it had a breakaway from that range (circled). If the nice rise in relative strength is any indication there is more upside to come.
Money flow has stayed positive while Cisco tries to find its way, a sign that institutions are not distributing the stock. It found support at the 200 ma, and the MACD confirmed a buy signal. I can see the stock making its way toward the gap from May, a good 5% higher from current levels.
Cisco Systems (Nasdaq: CSCO) Video Chart Analysis
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About Cisco Systems
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. It provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications. The company also offers service provider video infrastructure, including set-top boxes, cable/telecommunications access products, and cable modems; and video software and solutions. In addition, it provides collaboration products comprising unified communications products, conferencing products, collaboration endpoints, and business messaging products; data center products, such as blade and rack servers, modular servers, fabric interconnects, software, and server access virtualization solutions; security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, and advisory, integration, and managed services; and other products, such as emerging technologies and other networking products.
