From what I remember, though...$40-44 seems like a price the stock could fall to. I don't know how bad the problems are there, or if there are problems at all, but I don't question "smart" money. And a deteriorating chart means that smart money is getting out. Get out now, ask questions later, that's the name of the game. Compared to DELL or MSFT, CSCO's chart is very weak.
People may not realize it, but major damage was done by CSCO on Friday. From what I remember of CSCO's chart, it rarely tests its 200 day Moving Average, and when it has, it's broken it. Plus, that gap below $54 is pretty scary, and that was broken intraday. I don't care if it's intraday or close, it was broken pretty badly and that's all that counts for me. The waters have been tested and they will be broken next week.
So it comes down to this:
1) CSCO cannnot rally under current conditions as will no stock.
2) Dow will break September support levels next week (7500, I believe?) and move into the 6000's.
3) CSCO will break 200 day MA ($52, as I remember?).
4) CSCO's fall will be made worse by market related conditions, but mostly due to fears about the networking sector.
Hey Gary, I love CSCO. And I will be licking my chops to buy it when things stabilize. But not now, man. I'm going with $40, and when I get to my charts I'll see if that is indeed accurate.
Good luck, start buying when the analysts begin downgrading. :-) |
