Cisco Systems Shows Us Why Technical Levels Rock!
The markets seem to be erratic, wild and confusing to the average investor or trader. To most, there appears no rhyme or reason, to the select few who study technical charts, the pieces of the puzzle fall into place. Take a look at Cisco Systems, Inc. (NASDAQ:CSCO) today. An ugly earnings outlook and warnings of an uncertain future cause CSCO to drop sharply. However, while many would think there was no method to the madness, take a look at the exact low of the day on CSCO. It hit $21.00 to the penny. In addition, it rallied off the lows of the day which also happen to be a major double bottom support level going back to the early July low. Note the chart below. The bottom line is this, while stocks may go higher or lower, always follow the technical levels. It will let you know exactly where that stock is headed, where to buy and where to sell. For more information, guidance, analysis and swing trades, join the Research Center.
Chief Market Strategist