Long Term Prices to Watch in Cisco

• Posted by Greg Harmon
• on September 1st, 2016

August just ended and with that technicians get to peek at another candlestick on long term monthly charts. Frequent readers and twitter followers will know that I have been seeing very strong markets in technology stocks, including some that have been around for a very long time. And these two ideas together got me looking at the chart for Cisco Systems ($CSCO).

This stock lost over 90% of its peak value from the dot com days, making a low in late 2002. And frankly since then it has not done much of anything. For 14 years. That is a whole lot of nothing. Recent activity though has the stock poised for a possible major move higher. The monthly chart below tells the story.

This chart shows a tightening consolidation around a mid point at about 25. Since bouncing off of the bottom of the consolidation zone in late 2012 it has trended higher. Now as it starts September it is at the top of the triangle. It has support for continued upward price action from the rising and bullish MACD and a RSI in the bullish zone and rising.

Should the price continue higher, and over the triangle there are a few price levels to watch that would add increasing confidence of a large move higher to come. The first is a break of the triangle at about 32. Next is 33.15. This would be a move over the high bump in the chart from 2007. The third is 36.38. This is a 38.2% retracement of the move lower from the dot com crash. A break over that 38.2% level and close on a monthly basis would then like for a target move to the 50% level or 61.8% level. There is your major move. Keep a close eye on this one.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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