CSCO Flashing Early Strength off the 50 EMA
The Cisco Skid
CSCO gapped up May 14 and attempted to break higher just two weeks later. The failed break led to a decline back to a rising 50 EMA. The 50 EMA is just below the low of the gap up day, a positive sign. On Friday, July 10, price closed above the 10 SMA and RSI 20 popped its head above the 50 level. Price made a new 10-day high on stronger momentum (RSI 4 >75). The stock is showing orderly price action and should set up for a buy on a successful test of the 10 SMA for support.