The latest stock pick from Playbook of the Week is a bullish play on 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."
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