On "Mad Money Friday" night, host Jim Cramer pointed out that on Tuesday we'll hear from DuPont (DD) , Canopy Growth (CGC) , Cisco Systems (CSCO) and Twitter (TWTR) . Cramer was bullish on all four stocks. We have looked at DD recently and CGC, so let's check out CSCO.
In this updated daily bar chart of CSCO, below, we can see that prices are continuing to rally from a late October low. CSCO is trading above the rising 50-day moving average line, as well as the rising 200-day moving average line. A bullish golden cross of the 50-day and 200-day averages can be seen around the middle of January. The On-Balance-Volume (OBV) line has been rising since late October and tells us that buyers of CSCO have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just turned upward to a new outright buy signal.
In this weekly bar chart of CSCO, below, we can see that prices are in an uptrend above the rising 40-week moving average line. There is some resistance in the $48-$50 area that prices a testing now. A weekly close above $50 is a clear upside breakout on this chart. The weekly OBV line shows a rise from October. The MACD oscillator crossed the zero-line in December for an outright buy signal in this time frame.
In this daily Point and Figure chart of CSCO, below, we can see that a trade at $48.09 was a breakout. The nearby price of $50 is shown as a price target.
In this weekly Point and Figure chart of CSCO, below, we see that the software is projecting the $55 area as a target. A weekly trade at $49.03 is a breakout on this chart.
Bottom line strategy: CSCO has shown improvement since our last review on Jan. 15. The bulls are back so you can trade CSCO from the long side.
(DuPont is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells this stock? Learn more now.)
