Cisco Systems (NASDAQ:CSCO) Bearish Divergence

Cisco Systems (NASDAQ:CSCO) Bearish Divergence

Cisco Systems (NASDAQ:CSCO) Bearish Divergence

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 39.25.

The projected upper bound is: 42.09.

The projected lower bound is: 39.95.

The projected closing price is: 41.02.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 23.6801. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.71. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 2 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -61. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.

Rex Takasugi – TD Profile

CISCO SYSTEMS closed down -0.770 at 40.930. Volume was 34% above average (neutral) and Bollinger Bands were 37% wider than normal.

Open High Low Close Volume___
41.500 41.950 40.870 40.930 27,224,206

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 41.97 39.23 34.27
Volatility: 22 17 21
Volume: 25,876,838 21,963,826 20,798,696

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

CISCO SYSTEMS is currently 19.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into CSCO.O (mildly bullish). Our trend forecasting oscillators are currently bullish on CSCO.O and have had this outlook for the last 52 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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