CSCO stock price has been stuck in a wide consolidation zone ranging between $45.60 and $52.40. The stock price gained bullish momentum after touching the support level of $45.60 during mid January. This move resulted in a significant high point at $52.56, but unfortunately, the price faced strong resistance at this level, causing a subsequent decline. Eventually, the price retreated further, reaching a low of $45.60.
Recently, the stock price regained bullish momentum and started to rise toward the resistance level of $52.40 which was due to positive earnings reported by the company. Cisco systems beat the consensus estimates of revenue and earnings per share, which ignited a bullish rally.
A new support was formed at $49.50, which helped price in crossing the hurdle of $50. The stock price tried to rise above the annual high but again received strong rejection from the $52.40 level. Currently, price has been experiencing a bearish momentum since Friday. The rejection has caused a downfall of roughly -2.87%.
If bears can push the price below the $49.50 support level, there is a high probability that it might melt down to the next support level of $47.80. On the other hand, if price can form a support and gain bullish momentum to shatter the annual high, there is a possibility that it might rise toward $57. The consolidation is going on for quite long which indicates that the breakout would be much stronger.
Cisco Systems Announces Intent To Acquire Accedian
Cisco Systems have decided to purchase the performance analytics company ACCEDIAN from private equity firm Bridge Growth Partners. The transaction is expected to close by the first quarter of the fiscal year 2022. To address the assurance problem, Cisco announced the intent to acquire Accedian. This will enable Cisco systems to provide solutions to its service provider customers.
Will CSCO Stock Price Shatter Annual High?
Cisco systems stock price trades above the 20,50,100 and 200-day EMAs, indicating bullish momentum in the market. However, the Chaikin money flow score is -0.05, suggesting that weakness has started to rise in the price. CMF fell from 0.16 to -0.05 in the past 3 days. RSI nested in an overbought zone which ignited a reversal in the price.
RSI is currently at 58.95 and is downward sloping, indicating increased participation of bears in the market. The stock price reached the upper band of bollinger and initiated a corrective move. It is headed toward the lower band which resides near $48.
Conclusion
The market structure and price action for Cisco systems has turned bearish after facing rejection from the $52.40 level. It is currently headed toward $50. The technical parameters are favoring the selling side.
Technical levels
Major support: $49.50 and $47.80
Major resistance: $52.41 and $57
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/22/cisco-systems-csco-stock-price-declines-to-the-50-level/