{"id":13183,"date":"2024-12-13T00:01:18","date_gmt":"2024-12-13T00:01:18","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/12\/13\/why-ciscos-stock-reversal-could-be-a-game-changer-2\/"},"modified":"2024-12-13T00:01:18","modified_gmt":"2024-12-13T00:01:18","slug":"why-ciscos-stock-reversal-could-be-a-game-changer-2","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/12\/13\/why-ciscos-stock-reversal-could-be-a-game-changer-2\/","title":{"rendered":"Why Cisco\u2019s Stock Reversal Could Be a Game-Changer"},"content":{"rendered":"
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Stocks can move fast, like the speed of an arrow flying through the air. And if you don\u2019t monitor your charts, you can easily miss a trading opportunity.<\/p>\n

Last week, I wrote about CSCO stock<\/a>, one of the stocks filtered in my StockCharts Technical Rank<\/a> (SCTR) scan. At the time, I was waiting for CSCO\u2019s stock price to pull back to its 21-day exponential moving average<\/a> (EMA). Well, it happened a lot quicker than I anticipated.<\/p>\n

It\u2019s good that I go through all my ChartLists every trading day. The pullback also coincided with the upward-sloping trendline. It was accompanied by declining relative performance against the Nasdaq Composite<\/strong> ($COMPQ) and a decline in the value of the full stochastic oscillator<\/a>.<\/p>\n

Is this a classic buy-the-dip moment? To answer the question, let\u2019s look at the daily chart of CSCO<\/a>.<\/p>\n<\/p>\n

FIGURE 1. DAILY CHART OF CSCO STOCK. The uptrend is still in play, making the pullback to the 21-day EMA an attractive entry point.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

The uptrend broke slightly to the downside, but the support from the 21-day EMA was strong. Thursday\u2019s price action indicated a reversal is possible.<\/p>\n

The stochastic oscillator is approaching the 50 level and is starting to turn higher. The last two times CSCO\u2019s stock price pulled back to the 21-day EMA, the oscillator turned up at around the 50 level. I\u2019ll be watching to see if a similar scenario unfolds this time.<\/p>\n

CSCO\u2019s price action looks attractive. I\u2019m ready to open a long trade in CSCO when the %K line crosses over the %D in the stochastic oscillator. CSCO\u2019s stock price hit an all-time high in early December, so a pullback is a prime time to open a long position if all your criteria are met.<\/p>\n

The Game Plan<\/h2>\n

Cisco Systems may not be a direct AI play, but it is a networking company, and the stock could benefit from tech companies\u2019 increased AI spending. So it\u2019s not too far-fetched to anticipate CSCO\u2019s stock price to ride along with the AI wave.<\/p>\n

Thursday\u2019s price action does not yet confirm a bullish upswing, but I\u2019ll watch this chart closely. It\u2019s an opportunity I don\u2019t want to miss.<\/p>\n

Even if it looks like a near-perfect setup to buy on the dip, there\u2019s still a chance the trade could go against me. If I enter a position at around $59 and the trade goes south, the 50-day SMA would be my maximum stop loss.<\/p>\n<\/p>\n

Disclaimer:<\/em><\/strong> This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Stocks can move fast, like the speed of an arrow flying through the air. And if you don\u2019t monitor your charts, you can easily miss a trading opportunity. Last week, I wrote about CSCO stock, one of the stocks filtered in my StockCharts Technical Rank (SCTR) scan. At the time, I was waiting for CSCO\u2019s […]<\/p>\n","protected":false},"author":0,"featured_media":13182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-13183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=13183"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13183\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/13182"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=13183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=13183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=13183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}