Cisco (CSCO) Showing Signs of a Break Out and Continuation of the Bullish Trend
Cisco is showing signs of continuation the past two days, after quietly pulling back into late Monday. The past two days have seen renewed interest in the networking giant, as volume begins to build.
Cisco Systems (CSCO)
Prior to the recent 6 day consolidation, Cisco (CSCO) was trending. Since stocks go through alternating periods of consolidation and trending, its importnant for traders to identify when either is about to begin. This new apparent trend, is important especially if you’re trading options. The last thing we want is to buy options when the stock starts consolidating. Theta kicks in, ruining our trade. Instead, we look for a breakout, while monitoring new trend development or continuation if there is an existing trend.
- Cisco shows a triangle breakout.
- RSI rising and above 50. This suggests trend continuation.
- Price is above the moving averages.
- MACD is bullish and above its signal line.
SPY Consolidation or Continuation?
We want Cisco (CSCO) to start trending, so we obviously need the indices to start trending.
SPY is consolidating near resistance (281.00 +/-), having tested a breakout five (5) times without a successful break away. The 60 minute chart shows this clearly, as price rebounds from the lower zone.
A break below 276.35 (+/-) would be seen as the start of a new bearish trend.
NDX – Consolidation or Continuation?
The Nasdaq 100 is still trending, despite recent weakness in some sectors.
Don’t fight the trend!
There are additional stocks breaking out of consolidation patterns, and many that are showing signs of continuation. The task for you, me and members in the trading room is to identify if your stock is trending or consolidating. Consistency comes with this simple observation. Don’t fight the trend.
Here are a few more examples of stocks that are showing signs of trending on the 60 minute:
- FB, PLNT, AMT, NXST, HAIN, QCOM.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade CSCO and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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