Since CSCO might wind up being a bellwether this week, I wonder whether its chart could provide any clues. Its chart is full of mixed signals.
Take a look at the Bollinger bands in the daily chart, which have been starting to widen after a period of narrowing. This could mean a breakout one way or the other, as volatility increases.
An MM-type chart shows that it failed support at the 1/8, at 13.28, and is headed toward the 0/8 at 12.5. The -1/8 on the chart is 11.7. The Sept. low is 11.04. Other MM-type charts might arrive at different levels, of course.
On the daily, weekly and monthly charts, the next support level appears to be at or near the Sept. low.
On the daily, draw a trendline through the lows of March 20, April 9 and April 23, and the trendline has been breached.
On the monthly chart, long-term MACD is oversold, but there is a head & shoulders-type pattern. On the weekly chart, longer-term MACD is above the 0 line, not at all oversold, but stochastics in the daily and weekly is close to 0. Further, there's a small gap to fill near 15, from 4/22.
So what's it all mean? Maybe a quick test of the 12.5 area (and maybe even 11.7), followed by a quick bounce from oversold stochastics, followed by further downside pressure?
Who knows? |
