Technology stocks are not typically thought of as ‘low-beta,’ meaning they are not usually perceived as less volatile than the S & P 500 Index . However, there are quite a few low-beta technology stocks out there, and while they are not seen as the most exciting names, they can add value to a diversified portfolio. The old familiar Cisco Systems (CSCO) qualifies as low-beta within the technology sector. While some may write it off as a laggard, it holds appeal because of its relatively high dividend yield (approximately 3.2%) and relatively oversold condition versus the S & P 500. From a technical perspective, CSCO looks poised for a relief rally in absolute and relative terms. The stock has discovered support after becoming oversold, with the weekly cloud model (shaded area on the chart) showing a potential floor near $48.40. In trading ranges, overbought/oversold metrics like the stochastic oscillator can be especially helpful in timing entries and exits. We are encouraged by the upturn in the stochastics because it shows improved short-term momentum behind CSCO near support. A minor breakout would occur above the recent high of $50.55, above which next resistance is near $53.60 per the weekly cloud and a Fibonacci retracement level. Above that level, the gap from September 2023 would have a better chance of being filled up to about $55.50. Because CSCO has yet to break out, it is advisable to keep a tight stop-loss to manage risk. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. 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This low-beta tech stock with a nice yield is headed for a breakout, according to the charts
