Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, have been declining for the third month in a row: during this time, the price has reversed from the 52.34 mark (Murrey level [7/8]), moved into the negative part of the Murrey trading range and is currently testing the level of 47.66 (Murrey level [1/8]), consolidation below which will cause the development of a decline to 46.88 (Murrey level [0/8]), 46.09 (Murrey level [-1/8]), 45.31 (Murrey level [-2/8]).

The key for the "bulls" is the central mark of the trading range at 50.00 (Murrey level [4/8]), the breakout of which will allow the trading instrument to continue its upward dynamics towards the targets of 51.56 (Murrey level [6/8]) and 53.12 (Murrey level [8/8]), but so far this scenario seems less likely.

Technical indicators confirm the continuation of the downtrend: Bollinger Bands and Stochastic are pointing downwards, while MACD is increasing in the negative zone.

Support and resistance

Resistance levels: 50.00, 51.56, 53.12.

Support levels: 47.66, 46.88, 46.09, 45.31.

Trading tips

Short positions should be opened below the 47.66 mark with targets of 46.88, 46.09, 45.31 and stop-loss around 48.20. Implementation period: 5–7 days.

Long positions can be opened above the level of 50.00 with targets of 51.56, 53.12 and stop-loss around 48.90.