Technical Analysis – Cisco stock still holds above ascending trend line; bearish in near term
June 1, 2018 12:26 pm
Cisco stock price has declined considerably after touching the multi-month high of 46.30 on May 10. Currently, the price is developing near the rising trend line and the 23.6% Fibonacci retracement level of the upleg from 30.30 to 46.30, near 42.55, while the simple moving averages (SMAs) are ready to meet each other to create a bearish crossover.
From the technical point of view, in the daily timeframe, the RSI indicator lies below the 50 level and is moving towards the 30 level. Additionally, the Stochastic oscillator is approaching the negative zone as well, as it failed to extend its last upward movement and reversed lower.
Further downside pressure below the 23.6% Fibonacci and a penetration of the diagonal line could send prices until the next immediate support of 40.20, which overlaps with the 38.2% Fibonacci mark. Steeper decreases could drive the market towards the 50.0% Fibonacci region, which is holding slightly above the 38.15 support.
A move to the upside may meet resistance around the 43.95 barrier, an area which also encapsulating the 40-day SMA. A bullish run could extend gains until the 46.30 resistance level.
The medium-term picture is looking more bullish as the price rebounded on the 30.30 support on August 2017 and has been holding above the ascending trend line since.
Cisco stock price has declined considerably after touching the multi-month high of 46.30 on May 10. Currently, the price is developing near the rising trend line and the 23.6% Fibonacci retracement level of the upleg from 30.30 to 46.30, near 42.55, while the simple moving averages (SMAs) are ready to meet each other to create a bearish crossover.
From the technical point of view, in the daily timeframe, the RSI indicator lies below the 50 level and is moving towards the 30 level. Additionally, the Stochastic oscillator is approaching the negative zone as well, as it failed to extend its last upward movement and reversed lower.
Further downside pressure below the 23.6% Fibonacci and a penetration of the diagonal line could send prices until the next immediate support of 40.20, which overlaps with the 38.2% Fibonacci mark. Steeper decreases could drive the market towards the 50.0% Fibonacci region, which is holding slightly above the 38.15 support.
A move to the upside may meet resistance around the 43.95 barrier, an area which also encapsulating the 40-day SMA. A bullish run could extend gains until the 46.30 resistance level.
The medium-term picture is looking more bullish as the price rebounded on the 30.30 support on August 2017 and has been holding above the ascending trend line since.
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