Technical Analysis Trending

Cisco Systems, Inc. (NASDAQ:CSCO) is potential breakout candidate

Once again, we have a weekend read with holistic perspectives for you. Analyzing the Cisco (NASDAQ: CSCO) stock this time, this post covers technical analysis by Antonio Costa – our friendly technical expert on the US markets – and combines that with views of Wall Street sentiment and investor activity about the stock on social media.

Technical Analysis by Antonio Costa

The bulls have no reason to be alarmed. In fact, they may have a great reason to celebrate, the stock closed the week above the key resistance level of $34, a strong Bullish signal for next week. The stock is setting up to break out and has one more level to go, which is $34.23. CSCO has been in a nice uptrend for the last 3 months and it looks very strong with all major exponential moving averages going up. Daily technical indicators are in bullish zones, with MACD and RSI showing some upward momentum. The stock has good upside potential, so keep watching the stock for further moves.

The Wall Street View

Encapsulated in Stockal’s Confidence Meter, the Wall Street opinion on Cisco has been on an upward path for the last couple of months. It went from 62% to 65% and then further up to 73% recently. While the price had earlier gone below 33, contrary to Wall St estimates, now it seems to be getting back up and was at 33.75 at the time of last observation. This almost matches the Wall Street price target, now.

 

Social Media Pulse and Stock Price

We won’t say we were not surprised to see the degree of correlation between the price and social media pulse curves for CSCO. Social Media Pulse measures the acceleration of social chatter for any stock on platforms like Twitter and StockTwits. Interestingly, price falls were met with decreased interest from investors and traders, something that doesn’t always happen with high-activity stocks.

Interestingly, the price rises were met with similar commensurate enthusiasm (or the reverse!). It will be great to watch future social interest that the stock garners. Must watch closely.

The guest section in this post is by  António Costa, acclaimed trader and the popular author of AC Investor Blog.  All views and analysis belong to the author.

You can have unlimited access to such analysis on the StockalPRO platform – FREE for 3 months – with a quick 5 second signup. It’ll also help you discover other interesting stocks like Cisco using a unique screener product.

António Costa
I'm a 43 year old Independent Trader using proprietary technical analysis with more than 18 years experience of investing in the US stock markets. I write guest posts for Stockal to share my thoughts about capital, risk management, and trading. My posts contains only my personal opinion and are provided for informational purposes only.

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