One of the powerhouses of the Dow has finally broken free of the old supply area at 31.5 which has capped the progress since September of last year.
At the same time, the DMI indicator has turned higher and money flow is moving in favor of the new trend. The SCTR accumulation statistic has yet to push into enthusiastic territory, but we shall watch to see if it improves as the price advances. A favorable series of monthly and weekly candles shows that buyers are now in control. The broken area of 31.5 is now support and we would use that area to accumulate on any pullback.
In an earlier article on CSCO, we wrote about their likely participation in the new area of Blockchain protocol. IBM, VMW and CSCO were projected to be significant players in this space. We’re not deeply in the know about this, but price action on CSCO is very bullish and we expect prices to target and then substantially exceed 36 in the medium term.