Cisco: #PowerStocks Series Pick Of The Week (November 2024)

Did you attend any Halloween parties over the weekend? I took a stroll last night and saw several kids and young adults dressed up for Halloween. Some were dressed up as pumpkins, while others as witches and Dracula. Speaking of Halloween, the S&P 500 (commonly known as the US stock market) spooked many traders by dropping nearly 1% last week. Why is this a concern? Late-Oct is usually a bullish period for stocks, so this pullback took many traders aback. But if you've been following my Telegram Channel, you've been warned of an overheated stock market in this post and this post! It's time to be more defensive. As we took a more defensive stance, how has Oct been for our #PowerStocks picks shared in Oct 2024?

1. Builders FirstSource: Gain of 0%
2. Johnson Controls: No entry
3. Fortinet: Gain of 0%
4. Air Products and Chemicals: No entry yet

Being more defensive, I was anticipating deeper pullbacks in the stocks shared. Builders FirstSource and Fortinet were scratch trades, where you would have gotten out at breakeven. The share price of Johnson Controls didn't pull back deep enough to warrant an entry. However, if you had used the method shared in Explosive Stocks Mastery, you would've taken home a tidy profit of more than 2% in days! I'm waiting for the share price of Air Products and Chemicals to reach the price area I've highlighted. Hence, the return generated in Oct is slightly below the return generated by the S&P 500 of 0.92%. Before you jump into this week's #PowerStocks pick, let's review last week's: Air Products and Chemicals (APD).

Review Of Last Week's Pick Of The Week

Air Products and Chemicals (APD) was our #PowerStocks pick last week. I'd shared that I would like its share price to pull back to slightly under $315 and bounce before I consider buying its shares for an explosive swing trade. This is coming to pass! For your convenience, you can consider taking profit at this price area shared in my Telegram Channel.

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Why Is Swing Trading Cisco (CSCO) Worth It?

Source: investor.cisco.com/events

Cisco is a technology company that designs, manufactures, and sells networking products and services to companies worldwide. In the last 3 months, its share price has risen by more than 16%. This is 2.5x better than the performance of the S&P 500! After exploding 9%, its share price is pulling back, presenting you and I with an explosive swing trading opportunity soon. So, what's the game plan? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Cisco (CSCO)

Before you buy any stock for an explosive swing trade, you'll want to identify its price trend. This is because following its price trend increases your chances of success. Can you tell that Cisco's share price is in an uptrend from the chart above? You'll also want to compare the performance of Cisco's share price to that of the S&P 500 because a strong stock tends to remain strong, bringing you larger returns. In the last 3 months, Cisco's share price has risen by 16.4%, while the S&P 500 has only risen by 6.4%. Yes, that's a 2.5x outperformance! Cisco's shares deserve further analysis.

How Explosive Is Cisco (CSCO)?

You'll want to discover whether Cisco's shares have the ability to explode in price consistently. I've marked them out and measured the magnitude to save you time. Cisco's share price has exploded 10 times in the last 11 months, with each explosive upmove measuring between 4.6% and 13.3%. And this is a massive achievement for a company that enjoys a mega market capitalization of more than $222b! So, is it time to buy the shares of Cisco for an explosive swing trade?

Key Price Levels

To determine whether the time to buy the shares of Cisco is here, you'll need to uncover its key price level(s). If you look further back, you can identify a key price level (aka support and resistance) around $54. Why is this significant? After a 9% run-up, its share price has begun to pull back. And you can reasonably expect it to continue falling to around $54 before rising. That's where I'll be looking to buy its shares for an explosive swing trade. Here's a pro tip: Instead of staring at your screen, you may want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!