Cisco Systems, Inc. (CSCO) Technical Analysis

Price Action Analysis

Overview

• The latest session for CSCO shows a notable intraday range with a sharp move lower from recent highs, finishing near the lower end of the day’s range. The current price sits around $75.00, after yesterday’s close at $85.54 and an intraday low near $74.09. This pattern suggests a renewed balance between selling pressure and buyers stepping in at support levels.
• On the daily perspective, price action has recently rotated from a prior uptrend into a corrective phase, with impulsive downside moves accompanied by higher-than-average activity on the down days. The rally formed in late Jan into early February appears to have paused near the $80–$85 vicinity before the pullback.
• The weekly chart remains within a longer-term uptrend context, characterized by higher highs and higher lows over the past two years. While price is temporarily pulling back, the overall trend structure remains intact unless the price breaks substantially below established multi-month supports.

Daily Chart (3-month view)

• Trend and structure: Upward swing earlier in the period followed by a corrective pullback. Recent candles show a wide daily range with a clear rejection near the prior impulse zone.
• Candlestick patterns: Several large-bodied candles during the move up were followed by a pronounced downside day, indicating distribution pressure. There are attempt highs around the 80 level that have not yet been convincingly re-established.
• Volume behavior: Up-days were generally accompanied by increasing volume; the latest downside move shows elevated activity, consistent with a test of supply versus demand around the $75–$80 area.

Weekly Chart (2-year view)

• Trend and structure: Longer-term uptrend with higher highs and higher lows. The price has pulled back from prior strength but is still well above major historical baselines.
• Channel context: The recent action sits within a broad up-trending framework, with support zones that align near mid- to high-60s/low-70s if a deeper pullback occurs.
• Volume context: Weekly volume patterns align with a constructive uptrend over the longer horizon, with episodic softer weeks during pullbacks and stronger weeks as price advances.

Key observations

• Short-term risk has increased given price is testing immediate support around the mid-$70s after a pullback from recent highs near $80+.
• The price remains inside a larger bullish framework on the weekly chart, implying that a sustained move above recent resistance could re-accelerate the uptrend.

---

Technical Indicators

Summary readings (current values based on the latest data)

Indicator	Value	Interpretation
Price vs 50-day MA (approx.)	Price: $75.00	MA(50) ≈ $77.70; price is below the 50-day moving average, signaling near-term softness and potential resistance ahead of a sustained move higher.
RSI (14)	50.7	Neutral territory; no clear overbought or oversold bias. Allows for potential continuation in either direction with a catalyst.
MACD (12,26,9)	MACD ≈ 1.80; Signal ≈ 1.70; Histogram ≈ +0.10	Slight bullish momentum; the line remains above the signal but with a narrow margin, suggesting modest upside momentum that could strengthen if price recovers above key levels.

Notes

• The current price placement below the 50-day MA indicates near-term underbalance versus the intermediate trend, but the neutral RSI and a small positive MACD imply potential for a shallow bounce if price action confirms a base near support.

---

Volume & Momentum Analysis

• Volume behavior on the recent pullback suggests active participation around the support zone. Historically, corroborating volume on up-moves has supported prior advances, while current downside action has shown engagement that could reflect distribution or a shift in near-term dynamics.
• Momentum signals from MACD show a modest positive divergence (MACD above its signal by a small margin), implying the potential for a gentle reacceleration if price can reclaim the $80 level and push toward the $82–$85 area.
• The RSI hovering near 50 reinforces a neutral positional stance, with little overt momentum either to the upside or downside, signaling that price action may hinge on whether key support holds and a breakout above near-term resistance occurs.

---

Key Buy/Sell Levels

Trendlines drawn on the price action highlight three critical levels to watch, extended forward to anticipate near-term movement:

• Support Level 1: around $74.5

  • Status: Has effectively been touched (intraday lows near $74.09).
  • Implication: A clean base if price stabilizes here with volume waning; a daily close above this level could inspire a stabilization or a potential re-run toward the $80 area.

• Resistance Level 1: around $80.0

  • Status: Not yet decisively broken on a sustained close.
  • Distance from current price: approximately $5.0 away (about 6.7%).
  • Implication: A break above this zone with confirming volume could re-energize the uptrend toward the next resistance around $88.

• Resistance Level 2 (Longer-term): around $88.0

  • Status: Key longer-term hurdle.
  • Distance from current price: approximately $13.0 away (about 17.3%).
  • Implication: A decisive break above $88 would align with the higher-timeframe uptrend and could target upside extensions beyond the prior swing highs.

Buy zone considerations (with current price of ~$75)

• Zone A (Core support): around $74.5–$75.0
  • Has been touched; if price stalls here with no new selling pressure, this area offers a low-risk entry with tight stop losses just below the support.
  • Distance if价格 stays at $75: 0% (already touched).
• Zone B (Near-term rebound target): around $80.0
  • Not yet touched on a sustained close. Distance: ~$5.00, ~6.7% away.
  • A potential entry if price closes above $80 with strength in volume, signaling a renewed up-leg toward $88.
• Zone C (Optional upside target): around $88.0
  • Not yet touched. Distance: ~$13.00, ~17.3% away.
  • Entry would be considered once price clears $88 with conviction, setting up possible upside continuation.

Notes on how levels relate to chart context

• The $74.5 support aligns with a major horizontal base that the price has interacted with recently, providing a natural anchor for risk control.
• The $80 resistance sits at a recognized pivot area that previously capped gains; a confirmed close above it would suggest renewed buying interest.
• The $88 level reflects a longer-term resistance boundary visible in the 2-year context, representing a potential target for a breakout if the uptrend resumes.

Trendline extension guidance

• Near-term focus is on whether price can defend the $74.5 area and move back above $80 with higher volume.
• If a breakout above $80 is confirmed, the next substantial milestone is around $88, followed by potential extensions beyond that level depending on volume support and broader market context.

---

Technical Outlook & Summary

• Price ActionContext

  • Short-term: Price is testing a critical support around the mid-$70s after a pullback from recent highs. A stabilization above $74.5 with improving volume could reframe near-term risk to the upside.
  • Medium-to-long term: The weekly chart remains in an uptrend; the current pullback would be a retracement within a larger bullish structure unless price breaks decisively below established support in the $70s.

• Volume & Momentum

  • Volume suggests active participation in both up and down moves. The MACD shows modest positive momentum but needs a clear crossover sustainment above the signal line to imply a stronger up-move.
  • RSI around neutral levels supports a balanced stance; a sustained uptick in RSI above 60-65 together with a move above $80 could signal a more constructive swing.

• Technical Signals

  • Key bullish signal would be a daily close above $80 with meaningful volume, confirming a resumption of the upleg toward the $88 target and beyond.
  • A failure to hold $74.5 and a move back below $74 could invite additional downside testing toward the next objective around $70.

• Synthesis

  • The structure suggests a guarded bullish tilt remains valid as long as price holds above the $74.5 support and can reclaim $80 with momentum. A successful breakout above $80 may re-ignite the prior uptrend toward the $88 region, while a breakdown below $74.5 could extend downside toward the next support band in the low-to-mid $70s.

• Recommendation (technical stance)

  • Monitor for a high-probability setup around a close above $80 with robust volume to re-enter on the long side.
  • If already long, tighten risk near $74.5 with a stop just below that level to protect against a deeper retracement.
  • On a downside breakdown below $74.5 with sustained volume, reassess exposure and look for early signs of a new base forming near the $70 level.

If you’d like, I can refine the buy zones with tighter stop placements or develop a quick watchlist of potential triggers (e.g., a specific price bar pattern or volume threshold) for CSCO based on the current technical setup.