Cisco Systems (CSCO) Crossed Above the 200-Day Moving Average: What That Means for Investors
From a technical perspective, Cisco Systems (CSCO) is looking like an interesting pick, as it just reached a key level of support. CSCO recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
CSCO has rallied 11.7% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests CSCO could be on the verge of another move higher.
Once investors consider CSCO's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, and the consensus estimate has increased as well.
Investors should think about putting CSCO on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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