Playbook: Cisco Stock Has Intriguing Chart Setup

CSCO is also ripe for upgrades that could fuel a breakout

Matthew Timpane

CMT, Senior Market Strategist

Feb 1, 2023 at 8:00 AM

CSCO

Below is an excerpt from this yesterday's episode of Schaeffer's Playbook of the Week, featuring Schaeffer's Senior Market Strategist Matthew Timpane. Below, Matthew makes a bullish case for oil & gas stock Cisco Systems Inc (NASDAQ:CSCO).

"We’re going to remain bullish heading into the Fed week. We'll see if that changes next week, but for now, we have to maintain that stance as long as indexes are above their 200-day moving averages.

Cisco is in a flag pattern, and has a volume point of control (VPOC) support level you can see in the chart below. The 200-day moving average is down there as well. The 50- and 55-strike calls are sold to open above, so dealers are long calls.

Analysts are on the fence, so some outperformance could trigger upgrades. Of the 20 brokerages covering CSCO, 12 rate the stock a "hold" or "strong sell."

PLBK CSCO

Join Schaeffer's Playbook of the Week now and tune in every Monday morning at 8:30 a.m. to get ready for the trading week with me. Click here for more information to get started.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!