Stock of the day: Cisco

By Tomasz Wisniewski|

Published: May 21 2024, 05:02 GMT+0

Stock of the day: Cisco

In today’s analysis, we examine the current technical setup of Cisco. Recently, Cisco was trading within a symmetric triangle pattern, clearly marked with black lines on the chart. Initially, the price broke out to the upside, breaching the upper line of the triangle, which theoretically signaled a buy. However, this breakout turned out to be false, as the price quickly retreated below the upper line, highlighted in green.

This false breakout has shifted sentiment to negative. Yesterday’s trading session ended with a significant bearish candle, reinforcing the view that the false breakout is a sell signal. With the upper line of the triangle now breached and the price moving back inside the pattern, the probability of a breakout below the lower line of the symmetric triangle has increased. This scenario suggests that the downside risks are mounting for Cisco.

Given this context, the outlook for Cisco appears bearish. Broader market indices are also hinting at potential bearish corrections, which could add to the downward pressure on Cisco. Traders should monitor the lower line of the symmetric triangle for a possible breakout, as this would likely confirm further bearish movement for the stock. The situation on Cisco is rather negative, with higher chances of continued downward pressure in the near term.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-cisco-1

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