Charts suggest that this tech stock with low beta and a nice yield is ready for a breakout

When it comes to investing in the stock market, technology stocks are often seen as more volatile compared to other sectors. However, there are some hidden gems in the tech industry that can add value to a diversified portfolio. One such example is Cisco Systems (CSCO), a well-known name in the industry that qualifies as a low-beta stock.

Despite being perceived as a laggard by some, Cisco Systems offers an attractive dividend yield of around 3.2% and is currently oversold compared to the S & P 500. From a technical perspective, CSCO appears to be poised for a relief rally both in absolute and relative terms. The stock has found support after becoming oversold, with indicators like the stochastic oscillator suggesting a potential uptrend.

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With a potential breakout above recent highs, there is room for CSCO to climb higher towards key resistance levels. However, it is essential to keep a tight stop-loss to manage risk effectively. By timing entries and exits strategically, investors can capitalize on the momentum behind CSCO near its support levels.

While investing in low-beta technology stocks may not be as thrilling as investing in high-growth names, they can provide stability and income potential to a well-rounded investment portfolio. With careful analysis and risk management, investors can potentially benefit from undervalued stocks like Cisco Systems in the tech sector.

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