Cup and Handle Rising Wedge Earnings 2-9 AMCThis is another that can get a haircut at earnings ..Neutral
There is a fat rising wedge inside the cup. Rising wedges are often bearish and are not valid until bottom trendline is broken. CSCO has not broken bottom trendline..yet. CSCO can not catch a break! Rising wedges interrupt supply and demand as there is a lack of healthy pull backs. Both trendlines point upward and converge or narrow at the top. Rising wedges are a symptom of irrational exuberance. I missed the exuberance surrounding CSCO..just decided to take a look because I just did a chart of INTC and these 2 remind me of one another. INTC looks more bullish than CSCO to me right now. But we are all different.
Targets if CSCO breaks long entry level are 56.05 59.65 and 62.20. I am planning to watch hw she goes with earnings aaround the corner and a Rising Wedge in the chart. There is also an unfilled gap or 2 that CSCO could fill if and when it falls out of the RW.. Earnings are often when a security gets bitten by the RW. There are not enough buyers left.
When you do not know what to do, it is ok to do nuttin!
Not a recommendation/I am neutral on this one but have a feeling it will go down. in the short to medium term..
1 year high is 50.28 3 year high is 56.26 and long term, CSCO has a high from a long time ago of 82/I had to put TOS on max available to find that high as it is older than 20 years.
