CSCO: Strong Buy in My Radar List - Feb. 26

Technical Analysis (TA) & Price Action
Cisco Systems (CSCO) has recently broken out of a falling wedge pattern and is showing signs of a potential reversal. The stock reclaimed key support levels and is attempting to establish a higher low for continuation.

Key observations:
* Trend Structure: CSCO has broken out of a falling wedge and is attempting a trend shift toward higher highs.

* Support & Resistance:
* Major Resistance: $65.50 (CALL Resistance & Gamma Wall)
* Key Support: $63, followed by $62.50
* Stronger Support Zones: $61 (PUT Wall)

* MACD Indicator: Neutral, awaiting bullish confirmation with a potential crossover.
* Stoch RSI: Cooling off slightly but still in an upward trajectory.

Options Flow & GEX Analysis

The GEX (Gamma Exposure) indicator signals positive gamma flow, with key call resistance aligning near $65.50, suggesting a breakout here could push the stock significantly higher.
* IVR (Implied Volatility Rank): 14.3, with IVx avg at 21.7%, indicating a lower volatility setup.
* Put Side Bias: Only 4% PUT flow, meaning limited downside hedging.

* Key GEX Levels:
* CALL Wall Resistance: $65.50 → Breakout target toward $67.50 (3rd CALL Wall).
* PUT Support Zone: $61 → Breakdown could see a test toward $60.

Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $64.50 with volume confirmation.
* Target 1: $65.50
* Target 2: $67.50 (3rd CALL Wall)
* Stop-loss: Below $63

📌 Bearish Alternative (Hedge Play)
* Entry: Below $62.50 with increasing selling pressure.
* Target: $61 → $60
* Stop-loss: Above $64

Final Thoughts
CSCO is on watch for a potential breakout above $65.50. Options data shows limited downside risk, while positive gamma exposure could fuel upside momentum. If $64.50 holds, this stock has the potential for a strong bullish continuation.

📢 Risk Management: Adjust stop-loss levels according to your risk tolerance. Be mindful of the upcoming price action confirmation before entering a position.

🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.