Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, have been trading in a sideways range of 50.00–48.44 (Murrey level [4/8]–[2/8]) for the third month and cannot leave it yet. The quotes are preparing to test the central mark of Murrey’s trading range 50.00 (Murrey level [4/8]), after which growth to the area of 51.56 (Murrey level [6/8]) and 53.12 (Murrey level [8/8]) is expected. In the event of a breakdown of the key “bearish” lower border of the range 48.44 (Murrey level [2/8]), a decrease to the area of 46.88 (Murrey level [0/8]) and 46.09 (Murrey level [–1/8]) is expected.

Technical indicators do not give a single signal: Bollinger Bands are horizontal, the MACD histogram is at the zero line, and its volumes are insignificant but Stochastic reversed upwards, not excluding continued growth soon.

Support and resistance

Resistance levels: 50.00, 51.56, 53.12.

Support levels: 48.44, 46.88, 46.09.

Trading tips

Long positions may be opened above the 50.00 level, with the targets at 51.56, 53.12, and stop loss 49.30. Implementation time: 5–7 days.

Short positions should be opened below 48.44, with the targets at 46.88, 46.09, and stop loss around 49.00.