Wednesday, August 17, 2011

Cisco - Tech has never been cheaper

ARTICLE and GRAPHS



Barchart technical indicators:

  • The stock closed yesterday at 13.94 which is far below its high of 27.74 back in April of 2010
  • The 88% Barchart overall technical sell signal can be signal that the stock is becoming a bargain
  • Trend Spotter sell signal - another bargain signal
  • Below its 20, 50 and 100 day moving averages
  • In the past 12 months the stock had 44 new lows and has dropped 43.72% in price
  • Relative Strength Index 28.43% and still falling
  • Barchart calculates a support level at 13.48
  • Closed yesterday at 13.94 which is below its 50 day moving average of 15.56

    Summary:  I am not suggesting that you put Cisco (CSCO) on your watch list because its popular with both the professional and individual investors.  I pointing out that this is a time to buy a tech stock with projected increases in sales and earnings at a 41.84% discount from its 52 week high.  My plan would be to place a stop buy at its 20 day moving average around 15.50.  If the stock continues to go down move the buy stop down, if it trigger you know you added a bargain to your portfolio.


    Charts and data provided by Barchart

    Jim Van Meerten is a Marketocracy Master



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