Stock of the day: Cisco

Cisco is currently shaping up a bull flag, a classic continuation pattern that suggests a breakout to the upside. This type of pattern represents a brief consolidation within an existing uptrend, often preceding another leg higher. Despite the short-term pullback, the broader structure remains bullish, favoring a continuation of the prevailing trend.

A particularly interesting observation is Cisco’s strong historical tendency to respect this pattern. Since October, the stock has formed multiple flags and wedges, each of which eventually led to a breakout and trend continuation. The consistency of these formations strengthens the case for another bullish move.

Given Cisco’s track record with this setup, the most probable scenario is another breakout to the upside. Traders watching this stock may see an opportunity if price action confirms the expected move. As long as the broader uptrend remains intact, the flag appears to be just another pause before the next rally.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-cisco-6