Cisco Systems Inc. rallied from $20.22 to $30.31 (A-B), then traded below a falling trend-line for about one year (dashed line). The stock then rallied above this line to signal renewed investor interest and the start of a new up-leg toward higher targets (C). Behaviour indicators including the 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the positive status. A better entry toward $29 may occur, but only a decline below $27.50 to 28.00 would be negative. Point & Figure measurements provide targets of $33 and $37 Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc., and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.