CSCO - 3 Month Closing High - How to enter?
CSCO is apparently breaking out of an accumulation zone from $16.24 down to $13.30. The breakout occurred at a price level which leaves CSCO between support at $15.40, down $1.30, and resistance at $17.40, up $0.80. So even though the trend looks constructive it has more risk than reward. One way to make the odds work in your favor is to wait for a pullback to the $16.00 level, then you have $1.40 of upside and only $0.60 of downside risk to key support. The volume on this breakout isn't impressive, however, if the sellers are out of the way then it doesn't take much volume to get a stock moving again. CSCO has been in a downtrend for an extended period of time. And given the fundamental potential of some kind of interested buyer for their patent portfolio, this stock will be viewed as "in play" and generate a lot of trading interest on the buy side.
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