Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Wednesday, May 23, 2012

Cisco Systems Inc. (CSCO) - Holds the $16.35 support. 2012.05.23

The Cisco Systems shares price dropped in the first part of this month, after the earnings release and the buyers came in the market in the $16.36 area to stabilize the price.

The long term chart reveals the strong horizontal support in the $13.60 area that was successfully tested in March 2009 and in August 2011. However, the market developed lower highs in the past five years, giving a sign that the bears are still dominating the market.

Focusing on the mid-term price action, we can notice that the price is stalling in the 61.8% retracement level of the August 2011 – March 2012 rise that ties in with some key points set in the summer of 2011. Whatever the main trend direction will be, a move towards the $18.23 (+9.0%) level is likely in the next weeks.    

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