martes, 8 de abril de 2014

08/04/2014 Trading idea Cisco Systems Inc. CSCO Last price: 22.85$

 08/04/2014 Trading idea Cisco Systems Inc. Last price: 22.85$.

Ok, the Nasdaq corrected in the last session , sotcks with good potential like EBAY went down. Anyway I will analyze the value later if I have time.
Let´s see CSCO.
Supports and resistances:
S1: 22.02 S2: 20.98  R1: 24.08 R2: 25.79
The MACD is above zero, above the signal.
The RSI is in 61% with upside potential.
However the stochastic is leaving the 79% level  and is going down.
The price is leaving the Bolinger Up and moving to the AVG.
CISCO is rolling with a P/E= 14.93 EPS= 1.53 and distributed a dividend of 3.33% 04/01/2014.
As we can see in the graph the 2-4 Elliot wave was broken in February and nowadays is moving in a box and wants a break-out.
Buy Interval [21.84;22.09].
I think the stock has a good upside potential however I recommend to wait until the price correct (until the price enter into the buy interval), but considering the upside potential I recommend to study the technicals again when the price  will arrive to 22.33$ from my point of view this could be a valid price to buy.
Our targets:
TG1: 23.37$
TG2: 24.17$
TG ext: 25.45$

I hope you find it useful!