New Upleg for Cisco
by Mike Paulenoff, www.MPTrader.com
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Without a doubt, CSCO has carved out a 2 1/2-month base-like accumulation pattern since mid-May, which heretofore registered multiple rally failures in the vicinity of 24.00 ... until today, that is.
Let's notice the upside thrust from 24.00 to today's high at 24.65. My work argues that it is the initiation of a new upleg to fulfill the upside potential projected off of the bullish pattern, which points to a minimum target of 24.90-25.20 to the 27.00 area over time.
The very constructive pattern coupled with CSCO earnings on Wednesday evening -- against a background of mega-cash reserves on its balance sheet and amidst a relatively robust global technology sector -- all suggest to be positioned long now despite Cisco's upside pop earlier today.
Only a sudden downside reversal that violates last Friday's low at 23.60 will wreck the impressive technical set-up.
