December 11 Chart of the Day - Cisco
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Cisco (CSCO), a 1990s Dot Com star that once defined an era of market exuberance, is now reaching for the glory years again like an old Rock and Roll band back out on tour.
After decades of broad consolidation and rebuilding, price is pushing back toward its all-time high near $82 as traders watch to see if this is the long-awaited breakout or simply another cycle peak.
With momentum running hot and key levels directly overhead, CSCO has entered one of the most important decision zones in its modern history.
We'll review the chart from a price action perspective to identify potential levels of interest in both directions.
The charts highlight key levels where investors and traders alike will be watching closely.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
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Monthly Chart
The monthly chart shows an astonishing long-term story. From the Dot Com peak of $82 in 2000, Cisco spent more than twenty years carving out a massive base while oscillating below those highs. Now, for the first time since that era, price is approaching the same level again.
With the all-time high at $82 less than two points above current price, CSCO is testing a generational resistance zone.
If price breaks and holds above $82, the next measured levels begin with the -61.8 percent extension near $85 and then who knows...
Until the breakout occurs, this remains a major resistance shelf that has rejected price for decades.
With plenty of volatility traders have had much to be happy with and long term buy and hold investors have been greatly rewarded.
Unless of course you bought it 25 years ago...
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
The weekly chart highlights a rising channel that has guided CSCO higher for years. Price is now pressing into an area not seen in over two decades while also approaching the long-standing all-time high.
If CSCO breaks above $82, bullish momentum could accelerate rapidly. But if sellers defend this level again, price could rotate back toward $73.66 or even lower towards the median of the rising channel.
This is a textbook scenario where decades-long resistance meets trend-driven momentum.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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