CSCO: Strong Buy in My Radar List - Feb. 26
Technical Analysis (TA) & Price Action
Cisco Systems (CSCO) has recently broken out of a falling wedge pattern and is showing signs of a potential reversal. The stock reclaimed key support levels and is attempting to establish a higher low for continuation.
Key observations:
* Trend Structure: CSCO has broken out of a falling wedge and is attempting a trend shift toward higher highs.
* Support & Resistance:
* Major Resistance: $65.50 (CALL Resistance & Gamma Wall)
* Key Support: $63, followed by $62.50
* Stronger Support Zones: $61 (PUT Wall)
* MACD Indicator: Neutral, awaiting bullish confirmation with a potential crossover.
* Stoch RSI: Cooling off slightly but still in an upward trajectory.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator signals positive gamma flow, with key call resistance aligning near $65.50, suggesting a breakout here could push the stock significantly higher.
* IVR (Implied Volatility Rank): 14.3, with IVx avg at 21.7%, indicating a lower volatility setup.
* Put Side Bias: Only 4% PUT flow, meaning limited downside hedging.
* Key GEX Levels:
* CALL Wall Resistance: $65.50 → Breakout target toward $67.50 (3rd CALL Wall).
* PUT Support Zone: $61 → Breakdown could see a test toward $60.
Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $64.50 with volume confirmation.
* Target 1: $65.50
* Target 2: $67.50 (3rd CALL Wall)
* Stop-loss: Below $63
📌 Bearish Alternative (Hedge Play)
* Entry: Below $62.50 with increasing selling pressure.
* Target: $61 → $60
* Stop-loss: Above $64
Final Thoughts
CSCO is on watch for a potential breakout above $65.50. Options data shows limited downside risk, while positive gamma exposure could fuel upside momentum. If $64.50 holds, this stock has the potential for a strong bullish continuation.
📢 Risk Management: Adjust stop-loss levels according to your risk tolerance. Be mindful of the upcoming price action confirmation before entering a position.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
Cisco Systems (CSCO) has recently broken out of a falling wedge pattern and is showing signs of a potential reversal. The stock reclaimed key support levels and is attempting to establish a higher low for continuation.
Key observations:
* Trend Structure: CSCO has broken out of a falling wedge and is attempting a trend shift toward higher highs.
* Support & Resistance:
* Major Resistance: $65.50 (CALL Resistance & Gamma Wall)
* Key Support: $63, followed by $62.50
* Stronger Support Zones: $61 (PUT Wall)
* MACD Indicator: Neutral, awaiting bullish confirmation with a potential crossover.
* Stoch RSI: Cooling off slightly but still in an upward trajectory.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator signals positive gamma flow, with key call resistance aligning near $65.50, suggesting a breakout here could push the stock significantly higher.
* IVR (Implied Volatility Rank): 14.3, with IVx avg at 21.7%, indicating a lower volatility setup.
* Put Side Bias: Only 4% PUT flow, meaning limited downside hedging.
* Key GEX Levels:
* CALL Wall Resistance: $65.50 → Breakout target toward $67.50 (3rd CALL Wall).
* PUT Support Zone: $61 → Breakdown could see a test toward $60.
Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $64.50 with volume confirmation.
* Target 1: $65.50
* Target 2: $67.50 (3rd CALL Wall)
* Stop-loss: Below $63
📌 Bearish Alternative (Hedge Play)
* Entry: Below $62.50 with increasing selling pressure.
* Target: $61 → $60
* Stop-loss: Above $64
Final Thoughts
CSCO is on watch for a potential breakout above $65.50. Options data shows limited downside risk, while positive gamma exposure could fuel upside momentum. If $64.50 holds, this stock has the potential for a strong bullish continuation.
📢 Risk Management: Adjust stop-loss levels according to your risk tolerance. Be mindful of the upcoming price action confirmation before entering a position.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.