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Cisco Systems Inc. (CSCO) is a multinational company specializing in digital communication systems. It develops, manufactures, and sells networking hardware, software, telecommunications equipment, and other network-related services. It also offers cybersecurity management solutions. CSCO is listed on Nasdaq and is a component of DJI and S&P500 under Information Technology.

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Cisco's price was looking bullish before November 2021. On 18 Nov 2021, there was a spike in volume and the price moved in a Wyckoff sign of strength rally until it hit $62.33 on 29 December 2021. The price subsequently retraced and unable to continue committing above $60. In tandem with the increased volume suggesting the presence of supply and formation of Wyckoff Upthrust after distribution (UTAD).

The minor sign of weakness brought the price down to test around $51. There was an attempt to break above $56 on 18 Feb, however, there was just no demand to start a rally. This inability to rally up from Feb to mid-April indicated a phase of Wyckoff's last point of supply (LPSY). This was confirmed by the major sign of weakness that forced the price down to around $40.

The huge spike in volume on 19 May suggests some presence of demand and formed the Wyckoff selling climax (SC). An automatic rally (AR) followed at around $45.

An attempt to break out to test $49 on 18 August was unsuccessful, turning into Wyckoff Upthrust (UT). This was followed by another test for around $40. In fact, the price likely did a Wyckoff spring on 13 Oct at $39 and now attempting to break $45.   
 

Bias

Range bound. CSCO is still finding its footing in a narrow range between $39 and $45. According to the Wyckoff trading method, if it is able to commit above $45, there is a possibility to rally up to $50. However, if the price is unable to sustain above $42 (approximately the mid-point of the range), it could have further tests of $40 or $33. Recent volatility in the market makes it hard to identify winning stocks. It is essential to adopt the right techniques using the Wyckoff method to get an edge in the stock market.

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