CSCO

Following yesterday post "ANALYSTS", today I will post a technical analysis of CSCO (Cisco Systems Inc). But before that, let's talk about those CSCO earnings.

CSCO's 3rd fiscal quarter net income, posted yesterday after the closing bell, fell 5% to 29 cents a share. But revenue was up 10%. The difference is due to CSCO's aquisition of Nuova Systems. Without that aquisition, the EPS (Earnings Per Share) would have been 33 cents a share, up 13%.

Now the technical analysis: CSCO has been in a downtrend since November 2007, when the US subprime mortgage cyclone destroyed a significant part of the global banking system earnings. However, since February, CSCO started to recover and formed a double bottom in April. The pattern was confirmed last Thursday with an upside breakout. Let's see the chart:



The target of this pattern is above 28,5 USD. However, traders must be aware of strong resistance when arriving at the 28 level, a previous downside gap...

Good trade,

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