[livermore4ever]

Hi,

Before you read this Analysis you should take a look at my CSCO Chart posted in my website:
http://globalspecula...play;threadid=2

Long-Term Overview:
Cisco has been Bearish since January, at the time CSCO traded near the $30 resistance level, but didn’t made it, and started a strong downside movement.
In March it reacted on the long term support level for a few weeks, but once again the Bearish movement was on the air, and in the middle of April the support didn’t take the falling impact.

Medium-Term Overview:
During the last four months, CSCO started to develop a Large Descending Channel Pattern, we have already 3 downside contacts (and reactions), and 2 upside retractions, making this pattern strong in technical requisites.

Short-Term Overview:
Last week, CSCO made new year lows near the $20 level, after that, an upside reaction on the support level…

What Now ?

It’s to early to make a point, but if we look to some momentum indicators like DMI, we can see already some buying signals. The volume is not so great indeed, but taking in consideration that we are in August, and most traders are out, this can be a nice short term buying opportunity.

Trading Plan:
I think it would be a nice buy right now, using the descending support has a stop trigger, and expecting a target on the top of the channel, near the $23,50 level in a 4 weeks time frame.
Attention because in the $22,15 we can find both ema50, and ema200, and on a pattern like this one they should be looked has resistance levels.

What do you think about this ?

Would you Buy CSCO for this reasons ?

Best regards,