Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, are moving within a long-term downward channel: in the middle of the current month, the price reached its lower limit of 45.31 (Murrey level [2/8]), reversed and began a correction. Now the quotes are at 47.66 (Murrey level [5/8]), consolidation above which will allow them to reach the area of ​​48.44 (Murrey level [6/8]), 49.22 (Murrey level [7/8]). In case of consolidation below 46.09 (Murrey level [3/8]), supported by the middle line of Bollinger bands, the negative dynamics may resume around ​​44.53 (Murrey level [1/8]) and 43.75 (Murrey level [0/8]).

Technical indicators confirm the probability of further decline: Bollinger bands are directed downwards, Stochastic leaves the overbought zone, and the MACD histogram decreases in the negative zone.

Support and resistance

Resistance levels: 47.66, 48.44, 49.22.

Support levels: 46.09, 44.53, 43.75.

Trading tips

Short positions may be opened below 46.09 or when the price reverses around ​​48.44, with the targets of 44.53, 43.75 and stop losses around ​​47.00 and 49.00 respectively. Implementation period: 5–7 days.