September 7 Chart of the Day - Cisco
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Cisco Systems (CSCO) is trading in the $60 area again for only the third time since 2018 and before that it was 20+ years ago.
So are those levels here to stay? Maybe... but maybe not.
Looking at the monthly chart we can see a definitive uptrend and channel for the past decade with price ping ponging within that channel making a long series of higher highs and higher lows.
Down on the weekly chart we can layer in price action Fibonacci levels to identify potential levels of interest in both directions within the channel and support/resistance levels.
Seems like on the weekly level that price has a decision to make whether to continue up towards the upper channel boundary again or drift back towards the middle.
Nobody knows with any certainty the future direction of price on this or any other chart however if history is any indication on this chart volatility will likely remain. This can produce a beneficial environment for both investors and traders.
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.
Take a look at the charts and let us know what you think.
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