Technical Analysis of Financial Markets

Thursday, August 10, 2006

Cisco Systems, Inc (CSCO)

Positive earnings news from Cisco sent the stock surging 15%; however price action remained below $20 and OBV is yet to show signs of fresh buying interest. The $20 level has historically served as support and resistance. Should $20 act as resistance again, current market conditions and profit-taking may drive prices lower. The 200-moving average has crossed above the 50-day moving average; since long-term indicators carry more weight, this may indicate a bearish signal.

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