CISCO SYSTEMS INC.: MURREY ANALYSIS

Current trend

Stock quotes of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, formed a downward channel at the end of last year, within which they are currently trading: last week, the instrument reached its lower limit, coinciding with the lower border of the main Murrey trading range at 46.88 (Murrey level [0/8]), after which it attempted corrective growth.

Currently, the price is moving towards the central mark of the trading range at 48.44 (Murrey level [4/8]), the breakout of which will allow the movement to continue to the targets of 49.22 (Murrey level [6/8]) and 50.00 (Murrey level [8/8]). The key for the "bears" remains the level of 46.88, consolidation below which will act as a driver of decline to the area of 46.09 (Murrey level [-2/8]) and 43.75 (Murrey level [-2/8], W1).

Technical indicators confirm the continuation of the downtrend in the market: Bollinger Bands are pointing downwards, MACD histogram is stable in the negative zone, and Stochastic is directed upwards, while not excluding the continuation of corrective growth, but its potential is seen to be limited.

Support and resistance

Resistance levels: 48.44, 49.22, 50.00.

Support levels: 46.88, 46.09, 43.75.

Trading tips

Short positions should be opened below the level of 46.88 or after a price reversal around 49.22 with targets of 46.09, 43.75 and stop-losses of 47.45 and 49.70, respectively. Implementation period: 5–7 days.