• Chart of the Day: Cisco Systems, Inc. (CSCO)

    by  • April 2, 2013 1:40 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Cisco Systems, Inc. (CSCO) which designs, manufactures, and sells Internet protocol (IP) based networking and other products related to the communications and information technology industries worldwide.

    Ticker:  Cisco Systems, Inc. (CSCO)

    Strategy:  Possible rejection from a confluence of technical levels

    What I Am Looking At:

    • 0 percent return level (year-over-year) may serve as resistance
    • Monthly chart showing strong downtrend line from the 2007 peak
    • 80-month moving average (purple line) could serve as resistance
    • A roughly 38 percent retracement  from the 2007 peak to the 2011 bottom could serve as a peak in shares
    • Peak call open interest at the 21- and 22-strike prices could be potential roadblocks for shares
    • During the past 10 days nearly 3 calls have been purchased for every put, could be a potential headwind
    • Optimistic analyst community as 20 out of 28 analysts rate the shares a “buy’ or better, possible future downgrades
    • 1.16 percent of the share’s float is sold short, not expecting tailwind from the short sellers
    • A couple of conferences are scheduled for the next 2 days with CSCO presence

     

     

     



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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