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Good morning everybody. Time for our chart of the week, and this week we’re gonna focus in on a big tech name – one of the former four horsemen – Cisco Systems; CSCO is the symbol. So let’s take a look at this chart. It’s had a really nice run since the start of August. And I think this recent pullback is gonna be a good opportunity to get back on board if you’re not already on.We can see here that the stock has made a nice series of higher lows – and we can make a couple of trim lines over here – and higher highs as well too. That is our definition of an uptrend.Strong volume trends as well. Take a look at the volume bars down here at the bottom. We can see that volume has been pretty robust as the stock has been making a move through this channel.Relative strength. Clearly overbought here and has pulled back a little bit. But notice that every time it’s pulled back the last couple of times, it’s moved right back up again. Moved sharply higher here, moved sharply higher here. And we expect that the same thing is going to happen here. That’s why this is a good opportunity to add the stock.Chaikin money flow down here at the bottom – still pretty robust.MACD on a sell signal right now. But of course, that is simply because the moving averages are no longer moving up.Now of course, the longer-term moving averages, like the 100 day, which is in blue here, and the 200 day, which is in black, are all in bull mode right now. Even the 50 day moving average as well, which is up here.The stock just crossed below the 20 day moving average, which, the last couple of times it did that, it made a move right back up. So I think that one, two, three, four times already – the stock pulls back and makes a move right back up again.I think that this stock has got some room, maybe to get up to about $63-64 over the next couple of months. They do have earnings coming out in February – middle of February – and we’ll see what happens there. But of course, it’s been moving a lot with the rest of the technology names, which have been very strong over the past 6 1/2 weeks.Video Length: 00:02:21More By This Author:What Poor Breadth Means For The Stock Market Gap Inc: Chart Analysis 5 Things Driving The Bullish Stock Market Trend Right Now
