Markets remain very choppy during 2014 because we have a lack of continuation moves and false breakouts both sides. I think most traders are one foot in the door and one out as the action has been thin, faulty and tough to trust.
We have an interesting report from information and communication technology giant Cisco (CSCO). The company reported earnings after the market closed on 14 May and the results were great with the company reported earnings of $0.51 per share (beating estimated by $0.03) on revenue of $11.54 billion (beating estimates by $160 million). The stock increased 7% in after-hours trading. From technical analysis point of view Cisco just broke up neckline of Head and Shoulders pattern which I mentioned on 13 of May. I think it can continue when market will open. Consider Call option here.
Also, I will be watching other names from that industry. Good numbers from Cisco and upside guidance could boost up price on Intel (INTC). Chart looks buyable, in strong uptrend since the beginning of 2013 year. Support @ $26. Consider Call option here.
I am looking for bounce from resistance. $162 is very important level that acted like support and became resistance. Yesterday it confirmed resistance and I expect to see some downside follow through below $159.28. Potential target could be $154 next support level. Consider Put option here.
Commodities wake up with Gold broke up wedge. Now it regained important yesterday’s intraday level of support @ $1, 304. I think we will see $1, 315 soon. Consider Call option here.
Silver may attract more buyers as it bounced off support that is intact for one year. I broke up $19.75 small consolidation resistance. I think this is buyable area and we can see $20 and $22 soon. Consider Call option here.
USD/CAD trending down. It took few days to absorb that big drop down, found resistance zone (red rectangle) and broke down support line. Now it is ready for another move down. Consider Put option.