|
PureBytes Links
Trading Reference Links
|
<x-html><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<HTML>
<HEAD>
<META content=text/html;charset=x-user-defined http-equiv=Content-Type><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<META content='"MSHTML 4.72.3110.7"' name=GENERATOR>
</HEAD>
<BODY bgColor=#ffffff>
<DIV><FONT color=#000000 size=2>Hello everybody</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV>In continuation of the "strong stocks in weak markets" thread, my
work indicates that we are witnessing a range expansion to the upside in CSCO
<FONT color=#000000 size=2>from a low volatility environment. </FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>My logic: </FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>a/ +DI > -DI and ADX around 25 indicates
upside breakout in a strong trend strength environment.</FONT></DIV>
<DIV><FONT color=#000000 size=2>b/Momentum accelerating, </FONT></DIV>
<DIV><FONT color=#000000 size=2>c/39 period EMA good support, </FONT></DIV>
<DIV><FONT color=#000000 size=2>d/MACD positive crossover 2 days ago,
</FONT></DIV>
<DIV><FONT color=#000000 size=2>e/Price coming off overbought in the past 3
days</FONT></DIV>
<DIV><FONT color=#000000 size=2>f/Yesterday (8/24) was the narrowest range for
past 4 and past 7 days = range explosion imminent.</FONT></DIV>
<DIV><FONT color=#000000 size=2>g/ Short term historical volatility under 50% of
long term historical volatility = coil about to be sprung.</FONT> </DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>According to Swing Trade Theory (examples from
Street Smarts and others). a breakout above </FONT><FONT color=#000000
size=2>104.50 will confirm upside cascade move, and a b</FONT><FONT
color=#000000 size=2>reakout below 102 3/8 if penetrated will indicate a down
swing.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>At present (11:21 ET), CSCO is strongly bid at
the upside breakout level - and the only foreseeable resistance is the recent
all time high of 104.50 set on July 21 - pretty darn close to the breakout
level. </FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>CSCO has an EPS rank of 96 and a Relative
Strength rank of 97 - for the followers of CANSLIM breakouts.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT color=#000000 size=2>Regards</FONT></DIV>
<DIV><FONT color=#000000 size=2>Gitanshu</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV>Statutory Disclosure:<BR><BR>At the time of this writing, I am long Cisco
derivatives. This is not a<BR>recommendation to buy or sell any security, this
email shares a method<BR>available publicly as modified with my own
analysis.<BR></DIV>
<DIV> </DIV></BODY></HTML>
</x-html>
Attachment Converted: "c:\eudora\attach\CSCO.gif"
|