Cisco Systems (CSCO) has been unable to maintain a consistent trend for 2012. This sloppy action has confused a lot of traders and investors. This gap review will give us some key areas to focus on for further price direction.
LOOKING BACK
On May 10, 2012, CSCO had a bearish gap down under key support at $17.25. Price action drifted lower from the gap finding some buyers around $15.00. On August 16, 2012 CSCO gapped up into the “open window” from the previous gap down. CSCO has held this gap up in the $18.00 area well in the face of the market pullback.
KEY LEVEL
Key demand/support: $15.00 area.
THE TRADE
Short any price break down under the $18.00 price area or short any price rejection into the 19.74 area. Target would be $15.00.
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