Stock of the day: Cisco

Cisco’s market position is currently troubling. Recently, there was a false breakout above the green downtrend line, which had sparked some optimism among buyers at the end of July. However, this breakout turned out to be a false signal. We are now significantly below the recent flag formation, which is marked by blue lines. This flag pattern is typically a trend continuation signal, and given the preceding bearish trend, the breakout has indeed continued downward.

Moreover, there has been a crucial breakout below the orange horizontal support line. This development solidifies the bearish outlook for Cisco, presenting a strong signal to sell. The sell signal would be invalidated only if the price manages to climb back above the lower line of the flag formation, though the likelihood of this happening appears rather slim at this point.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-cisco-5