Cisco Systems Inc. stock is struggling to hold a bullish streak and is losing investors’ interest. On 15th Feb, CSCO reported its earnings ( Q2 2023 ), with a surge in income and revenue above the analysts’ estimates, which permitted bulls to strike $50. Seller sentiment rose sharply, supplying on top. Last week, the stock opened with a gap up opening while its numbers floated in the market, and after the headwinds, the stock retraced back to fill the gap witnessed in the last few sessions.
Cisco Systems Inc. is a leading manufacturer of internet protocol-based networking. Recently, CSCO partnered with Mercedes-Benz AG to work on its mobile office experience in their vehicles. CSCO remained highlighted in the news, with various orders and events positively impacting price.
Cisco stock price trades above 100 and 200 days EMA and stands on the 50 days EMA. The stock is attempting a bounce and trying to break sellers’ momentum.
CSCO stock is trailing near the lower trendline, where bulls stumble to hold and confront certain throwbacks. Moreover, the stock slumped for the last six sessions after its numbers were declared. The dropdown of prices implies that sellers are trapping the buyers involved in it.
CSCO lacks momentum over daily timeframe
On the daily chart, CSCO stock exhibits a slight correction over the top, near $50. The stock attempts to surpass the critical resistance mark but cannot prevail this time. For the past 3 months, Cisco has hovered within the band between $45 – $50 but hasn’t broken the range on either side maintaining a strong grip. Cisco stock decreased by 7% this week, spraying the gains.
CSCO was at $47.40 during yesterday’s session and registered weakness over the whole week. The bulls are unable to hold the gains on the top. Moreover, the ascending triangle pattern formed on the daily chart, which, if it breaks, brings downside moves towards $45. Conversely, if bulls sustain to hold above the trendline, then CSCO will again retest the swing of $50 in the upcoming sessions.
Traditional indicators on CSCO
CSCO stock short-term charts show price stuck in a narrow range, but a gradual decline was noted, favoring bears. Highs were immediately sold out, resulting in the stock losing gains in its 7th straight session.
The Relative Strength Index (RSI) curve continues to dip, slipping from the neutral range. The curve indicates that it is heading towards the selling region.
The MACD indicator continues to plot red bars on the histogram and indicating persistent slashing of the stock price. Last week, a bearish crossover was noted, leading to a price breakdown.
Support Levels: $45 and $40
Resistance Levels: $50 and $53
Conclusion
Cisco stock price is struggling to hold gains, and current dips has encouraged the bears. The stock is near the crucial support level of $45. If the bulls hold there, a bounce may be seen in upcoming sessions.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/02/cisco-stock-nasdaq-csco-will-csco-stock-price-transcend-50/