The Cisco (CSCO) trade setup has a lot of appeal to it right now. It has broken out and above the year-long resistance that has formed around the $29.00-40 level with authority. At this point though you have to be careful about adding new long positions on momentum, because it is going to take a lot for the market to sustain its current direction without some kind of near term pullback.

So am I bullish on Cisco? Yes. Would I be buying it here? Absolutely not. I like the chart, I like the upside momentum it has displayed but I think it needs to pullback to the $29.00 to $29.10 area to play a bounce off of long term support. If it can do so, I give it an upside target of $35-38. 

If support fails, I see it dropping to around $27.00.