Microsoft (MSFT) and Cisco (CSCO) Bounce
Two technology stocks on the Dow Industrials Microsoft (MSFT), and Cisco Systems (CSCO) bounced early in the week. Things to consider,
Microsoft, and Cisco Systems Bullish?
- Microsoft stock and Cisco moved back above their 200-day moving averages Wednesday.
- Both are working on potential bases, with their shares roughly 10% below 52-week highs.
- Relative strength lines are all near highs.
- Microsoft and Cisco also show several quarters of accelerating earnings and sales growth, with cloud computing giving a big boost to Microsoft.
While Microsoft has held up reasonably well in this latest correction, Apple and Amazon have been selling off. Apple is still the world’s most valuable company, but its market cap is now $839.41 billion.
Microsoft and Cisco stocks are worth watching, but they have work to do before entering a buy range. Caution is still warranted as the market remains in a correction. Traders should wait for a new follow-through day confirms the return of institutions.
The major averages tried to bounce back Wednesday. The Nasdaq composite and S&P 500 index closed higher, but the Dow Jones faded by comparison. Dow components Apple (AAPL), Boeing (BA) and Intel (INTC) finished the session lower.
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Happy Trading,
Vinny
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