Bullseye; RE:" CSCO "
geocities.com
CSCO is not a difficult stock to trade, IMHO - but one needs patience and should be prepared beforehand. Note that it has a well - defined trading range-channel with an Upward-Sloping Trend. If you are not a chart reader, my chart must look pretty strange (^_^)
If you are very patient, buy the dickens out of CSCO whenever she gets near her 200d EMA line (the yellow line on my chart) and just hold. When she gets into the magenta lines at the top of her channel, consider selling (near-month) covered CALLs on your shares.
If you are a trader, and want to surf CSCO's waves the candlesticks often indicate intra-channel turning points; and she does track in sympathy with the market index's turning points, in general.
You are wise to be wondering what she will do next at this particular point in time, Bullseye: she has just busted up out of her intra-channel DownTrend and may "re-trace"... she's been going up for six days, and you can see how she likes to cycle (about ~9 days). If she fiddles around for the remainder of the week, and does not fall below the median of the channel, and does not make a candlestick reversal pattern - she'll probably go on up to that 62~64 range at the top of her channel, as you suspect.
Of course, this wonderful channel will not last forever (^_^) but until some other characteristic becomes evident, this is what we have to work with. BTW, this channel has been intact since 15-MAY-97.
-Steve |
