Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, are correcting at 50.89.

Continuing its active development in the field of network security, the company announced the launch of the advanced Cisco Full-Stack Observability Solutions platform, which provides access to a wide range of predictive information to optimize business performance. The key areas of the service will be data on costs compared with performance indicators; resource optimizer for applications running on the network; detailed security analytics, as well as solutions for visualization of internal requests of artificial intelligence for information technology (AIOps).

Earlier, it became known that the analysts of the financial conglomerate Barclays left the forecast for the issuer’s securities “equal-weight” with the target price of 51.00. Thus, the company received its fifteenth hold rating also to twelve buy ratings from various analytical companies (and none for sale), which indicates a high confidence of experts in the growth of the asset.

Q2 financial report is due on August 16: revenue could rise to 15.05B dollars, up from 14.6B dollars in the previous quarter, and central EPS guidance is 1.06 dollars, set to be a record if realized.

Support and resistance

On the daily chart, the trading instrument is moving in a corrective trend near the resistance line of the rising channel with boundaries of 47.00–53.00.

Technical indicators strengthen the buy signal: the range of fluctuations of the EMA of the Alligator indicator is actively expanding, and the AO histogram forms corrective bars above the transition level.

Resistance levels: 51.50, 54.00.

Support levels: 49.60, 47.40

Trading tips

Long positions may be opened after the price rises and consolidates above 51.50 with the target at 54.00. Stop loss — 50.00. Implementation period: 7 days or more.

Short positions may be opened after the price drops and consolidates below 49.60 with the target at 47.40. Stop loss – 50.50