Cisco Systems (NASDAQ:CSCO): bouncing on support
Stock price is falling since November 7, 2007 after earnings report. But this drop ended last Wednesday. As we can see at the figure below, a hammer candlestick showed us the moment to bounce, just on $22 support level. This hammer was confirmed next day, thanks to a white candlestick with a closing price over hammer closing price.
Afterwards, stock price has risen reaching the first objective: 23,6% Fibonacci ratio of the drop since November. If this resistance level is broken, next objective would be the 38,2% Fibonacci ratio: $26,88.
Support level: $22,20
First resistance level: $25,14
Second resistance level: $26,88