Cisco’s Trend Analysis & Price Forecasts for 2015: Can it Really Double your Money?

Cisco's (CSCO) lifetime stock chart looks very much similar to that of Microsoft (MSFT). We have discussed the possibility of a very major breakout in Microsoft in a recent analysis. Cisco is currently trading around $24 and it looks like it might take support on the green trend line a tad below current price. Please read the analysis for a better understanding of the chart plotting.

Why Cisco looks attractive for long term investors?

Even on the lifetime chart we can clearly see that it has been trading in a narrowing channel for over a decade now and now it is in the process of testing the upper boundary of this channel. I am assuming that now it will attempt to break out of this narrowing channel, if not in this attempt then sometime later this year. On the upside the key resistance levels are $27.50 and $33.50 as per my observation. I expect the stock to maintain the green line support and clear through the resistances quite easily as it is doing it after consolidating for 10 years.

I am of the opinion that investors should look at building fresh positions around current levels and keep a strict stop loss tad below $20. If it breaks below $20 then it might straight away head for the lower end of the long term channel.

I can't really predict the quantum of the breakout from this decade long narrowing consolidation channel, but I can comfortably say that this stock is likely to test $33 in a year from now. My guess is that it will clear the second resistance too, and we might see it around $40 by the end of 2015. So, this seems to be a low risk and high reward trade as of now. My conviction in this trade is very high, just like most other technology stocks I have recommended in past few instances. Maybe, technology is giving us early signs that it will be the key investment theme over the next 2-3 years.

This is one more stock you can take exposure to through your IRA. 

5 comments:

  1. Don't think it can double. Its a sticky stock, doesn't really move! holding a small quantity since ages. Hope you are right though. :)

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  2. Is really good, I love your website! Thank you so much for sharing and imparting.
    Stochastic Oscillator Analyzer

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  3. Technology is definatley a key investment theme, I would say for the next 5 years. Regards K Toussifar

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  4. Cisco (CSCO) is holding strong. It continues to remain a buy on every dip. But investors should have some patience here. No need to raise your stop loss as it can always get a bit volatile with broader markets looking overbought. If we are lucky, we could see it trading above $30 by 2013 end.

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Don't keep interesting thoughts to yourself ;)