In keeping a balanced approach to the stock market, I have certain companies on radar while at the same time being open to going bearish (beyond the SPY short) if the signals come in.
As it is, the market has clung to a tight range I would assume with the intention of wracking bulls’ and bears’ nerves.
So taking a market-neutral approach and simply looking at companies, the list includes tech giants Intel, Apple, Google and Cisco, among several smaller fry. I would include Microsoft as well, but the chart is not very pleasant right now and unlike Cisco for instance, it is overly dependent on the PC market. If Intel goes according to plan, they will at least partially wean away from that dependence through mobile chips.
On Cisco, the company is a leader in the “Internet of Everything”. Now that we got that hype out of the way, we can say it is a networking giant with a big footprint in the Cloud and even more importantly, in security of that Cloud.
It’s earnings beat expectations and CEO Chambers thumped his chest in forward guidance (unlike many corporations lately), driving the stock up to 30/share. It has declined in a channel since, filling the gap along the way.
Daily MACD is triggering up and the price has broken the trend channel. Resistance however, comes in the form of the 50 day moving averages around 28.
A monthly view recalls what Intel looked like last year when we NFTRH+’d it. Very simply, 25 can be considered important support and 30-31 (where it stopped after the February earnings pump) is critical resistance. The break above 25 targets 35. But to get to 35 CSCO would have to cross long-term resistance. Such a break would target 45.
Buy Target: 25 (it could get there if the market corrects) to current level (if you can take some interim downside)
Sell Target: 35 or for those more patient/optimistic, 45
Stop Loss: Below 24.50 (because that would lose the big picture support at 25, but keep in mind that the bull trend out of 2011 only breaks if it drops below the Oct. low of 22.17)
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.