Entries in Rounded Bottom (1)
The Rounded Bottom in Cisco Systems (CSCO) Looks Good
Price Patterns
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PrintThe bulls are running away with today's tape, taking the broader market on a wild ride higher. But don't get too greedy chasing stocks higher. Risks still remain.
It seems that the recent actions by the central bank and government are emboldening the bulls to buy stocks. While the worst is probably not over in the long-term, the recent bailouts by the government might buoy stocks for the short-term.
One way to play a stabilization in stocks is through the technology sector. Stocks like GOOG, AAPL, RIMM, MSFT, etc, are immune to the credit contagion and subprime woes.
One of the best looking set-ups in the technology sector right now is Cisco Systems (CSCO). The stock has traced out a rounded bottom over the last three months. The pattern tells me that CSCO is under steady institutional accumulation.
Look for a steady rise over the coming months and confirm the trend with an advance past $27. Such a breakout should eventually lead CSCO back up to $29 or $30.
