In the fast-paced Lightning Round of Jim Cramer's Mad Money program Wednesday Jim Cramer commented on Cisco Systems (CSCO) : "I think Cisco is terrific. It's no longer just hardware anymore." Let's check out the charts and indicators.
In the daily bar chart of Action Alerts PLUS holding CSCO, below, we can see that prices broke out on the topside of a long consolidation pattern. The breakout finally came in February as CSCO made new highs for the move up. Prices are above the rising 50-day and 200-day moving average lines.
The daily On-Balance-Volume (OBV) line has moved up to a new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late January for an outright go long signal.
In the weekly bar chart of CSCO, below, we can see that prices have doubled in the past three years. CSCO is above the rising 40-week moving average line. The weekly OBV line is at a new high and the MACD oscillator is pointed up in a bullish configuration.
In this Point and Figure chart of CSCO, below, we can see an upside price target of $57.38 being projected.
Bottom-line strategy: If you are long CSCO based on previous recommendations you should continue to hold. Raise stop protection to $50 to lock in more gains.
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