Aug. 28 at 1:06 PM
$CSCO The fundamental picture and the price action disagree. Accelerating revenue growth (7.6% → 9.7% → 12.0% → 17.6% YoY over four quarters), guidance far above consensus, real AI-infrastructure traction (
$4B in AI orders, Nvidia/Supermicro rack-scale expansion announced 25 Aug). Price: a −9.5% break of a double top, now capped by its own 20/50-day averages, with options OI concentrated right at that resistance.
The market saw the same numbers we all did and sold them, because of margin compression from memory costs. The stock is also still miles above its 200-day (
$93.72) — this is a pullback in an uptrend. The levels that matter are 109.59 (recent low — losing it invalidates the consolidation) and 115.5 (moving averages + call OI wall — reclaiming it invalidates the breakdown). Let's see how this behaves over the next week. Be patient!
