Cisco Systems, Inc. (CSCO): Watch Out For Technical Signs

Cisco Systems, Inc. (NASDAQ:CSCO) gained 0.06% in yesterday’s session, going up from its prior closing price of $32.16 to $32.18 The stock price went upward in 6 of the last 10 days and has generated 0.59% during the last two weeks. Trading activity decreased by -8.07 million shares, and in total, 14.62 M shares exchanged hands for about $470.58 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.

Inside CSCO’s Recent Trend

Cisco Systems, Inc. (CSCO) is the upper part of a horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $32.42 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect Cisco Systems with 90% probability for the price to range between $30.61 and $32.61 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.

Cisco Systems, Inc. Technical Signals

CSCO has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $32.01 and $31.63. A break down through these support points will trigger sell signals. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Tuesday September 12, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity.

Cisco Systems, Inc. (NASDAQ:CSCO) Support And Resistance Levels

Cisco Systems, Inc. (CSCO) recorded volume accumulation so there will probably be a surplus of buyers at $32.09. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $32.19, $32.21 and $32.34.

Accumulated volume is going to prevent the price from rising further at $32.19 and this action will lead the price to take a temporary pause or stay muted for a few days.

Cisco Systems, Inc. (CSCO) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.31 (0.97%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 1.24%.

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