Cisco Systems Inc. - (CSCO) - September 7, 2023
Capping off a year-long relative strength recovery trend that started deep in the red zone of the SIA S&P 100 Index Report, communications equipment producer Cisco Systems (CSCO) finally returned to the Green Favored Zone at yesterday’s close for the first time since August of 2019. Yesterday CSCO finished in 26th place, up 2 spots on the day and up 26 positions in the last month.
For nearly a year, Cisco Systems (CSCO) has been under renewed accumulation, clawing back territory lost in a significant market selloff. Much of the first several months was spent base-building, but since establishing a higher low near $46.00 in May, accumulation has become more consistent and transparent.
So far this year, CSCO has completed two bullish Ascending Triangle breakouts, one over $49.00 and one over $52.00 which has reversed polarity to become support along with an uptrend line near $53.75. Initial upside resistance appears at the January 2022 peak near $61.00, followed on trend by $65.00, $71.00 and $78.00 based on measured moves.
Since bottoming out in October of 2022, Cisco Systems (CSCO) has been steadily recovering lost ground, particularly since completing a bullish Double Top breakout and retaking the $50.00 level in July. With the current advance extending into September, CSCO is currently approaching its January 2022 peak near $60.65 where a breakout would confirm that the shares’ long-term uptrend has resumed.
Potential upside resistance tests appear near $63.15, based on a vertical count, then $65.65 and $78.50, which are based on horizontal counts. Initial support appears near $52.80 based on a 3-box reversal.
With a perfect SMAX score of 10, CSCO is exhibiting strength across the asset classes.
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