Signal Says Buy The Dip on this Blue Chip

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The shares of blue chip Cisco Systems, Inc. (NASDAQ: CSCO) it's retreated after peaking at $ 57.56 in 18 years last week. The withdrawal was partly caused by William Blair's reviewand the title starts strong this week, up 1.2% to $ 55.43. In addition, equity has triggered a bullish signal that could propel it even higher in charts, if history is an indicator. & Nbsp; "data-reactid =" 11 "> The shares of Blue Chip Cisco Systems, Inc. (NASDAQ: CSCO) it's retreated after peaking at $ 57.56 in 18 years last week. The withdrawal was partly caused by William Blair's reviewand the title starts strong this week, up 1.2% to $ 55.43. In addition, equity has triggered a bullish signal that could propel it even higher up the charts, if history is an indicator.

Specifically, CSCO is in the standard deviation of its 80-day moving average after a long time above this trend line. This signal has sounded six times over the past three years, according to data from Rocky White, senior quantitative analyst at Schaeffer. Cisco action was up one month later in 83% of cases, with an average yield of 5.7%. In the same way, a similar move would mean new highs on the charts, placing stocks just below the $ 59 range.

Despite this recent rating by William Blair, most analysts have remained optimistic about the title, with 12 of them calling it a "strong buy", two saying "buy" and only five saying "support". "lukewarm. And while its premium is 6.2% below the current level, the target price of $ 58.75 per 12-month consensus represents the territory that CSCO has not seen since October 2000.

However, option traders were a little more bearish, with the International Securities Exchange (ISE) CSCO 10-day call volume / call volume ratio, Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) located in the 80th percentile of its annual interval. If CSCO continues to climb the charts, a casual pessimism could further hurt the security forces.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Now could be a good time, use the options d & # 39, buy the plunge on Cisco too. Schaeffer Volatility Index (SVI) 22% is just 22% of all other readings in the past year. This means that short-term options take into account expectations of relatively low volatility for now. "Data-reactid =" 26 "> That might be a good way to use options both to buy Cisco's downside, too. Dow's stock Schaeffer Volatility Index (SVI) 22% is just 22% of all other readings in the past year. This means that short-term options take into account relatively low volatility expectations for the moment.