Stock of the day: Cisco
24 June 2024
For today's stock of the day, let's focus on Cisco, which is currently signaling a strong buy opportunity. In mid-June, the price broke below a key horizontal support marked in orange, initially indicating a bearish trend. However, this breakout proved to be false, marked by the blue color, as the price quickly reclaimed this support level. The false breakout is significant as it has now turned into a strong buy signal, with the price firmly back above the orange support.
This bullish sentiment is further supported by the positive sessions on Thursday and Friday. The current setup suggests targeting the green dynamic resistance, and a daily close above this level would confirm a robust buy signal. On the flip side, if the price falls back below the orange support, it would negate the bullish potential from the false breakout, signaling a sell.
Given the current market dynamics, Cisco presents a compelling buying opportunity, with the potential for significant upside if it continues to respect the newly reclaimed support levels.