Shareholder returns and stock trends
So far in this series, we’ve discussed Cisco Systems’ (CSCO) recent acquisitions and their outlook for the company’s future. Let’s have a look at the technical indicators that traders and investors rely on to make market entry and exit decisions. Moving averages and RSI (relative strength index) scores are among the most widely used technical indicators.
On May 26, 2017, Cisco (CSCO) stock rose ~8.9% in the trailing-12-month period. However, in the trailing-one-month period, it fell ~7.5%. CSCO rose ~0.93% in the trailing-five-day period. Previously in this series, we looked at several factors that played a role in Cisco’s stock roller coaster ride this month.
Cisco’s moving average convergence divergence
On May 26, 2017, Cisco’s last trading price was $31.50. The stock was trading 4.5% below its 20-day moving average of $33.00 and 4.5% below its 50-day moving average of $33.00. It was trading 4.5% below its 100-day moving average of $33.00.
A company’s MACD (moving average convergence divergence) is the difference between short-term and long-term moving averages. Cisco’s 14-day MACD of -0.30 shows a downward trading trend because the figure is negative.