Cisco Systems Inc. (NASDAQ: CSCO) Breaks 2008 Lows Says Market Timer Frank Kollar

July 10, 2008 (FinancialWire) (By Frank Kollar)

Shares of Cisco Systems Inc. (NASDAQ: CSCO) broke below their trading lows for 2008 on Wednesday, July 9. Those lows were reached only in intra-day trading back on February 7.

True, Cisco chief John Chambers had bad news, announcing late Wednesday he no longer expects the recent slowdown in tech spending to pick up until next year at the earliest.

But still, shares of Cisco, now down 22%, were already down at their 2008 lows before that announcement and had lost some 17% in the past four weeks of trading.

Where is support for this stock? Watch for a bullish reversal between $20.70 and $20.17, both strong technical support levels. Bullish trades using the lower support level as a buy stop could then be taken.

But a close below $20.17 would probably result in a break below $20 a share. The next support is down at $18 a share. If Chambers is correct, that level is within reach.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.