Cisco drops 11.36% as price slips below MA-20 and MA-50 but holds above major support

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Cisco drops 11.36% this week

Highlights

CSCO trades at $75.26, below its MA-20 ($79.19) and MA-50 ($77.90) but remains above long-term MA-200 support at $70.51.
Short- and medium-term indicators (RSI, Stochastic RSI, ADX, Bull/Bear Power) point to sustained selling pressure and oversold conditions despite MACD showing strong longer-term buy momentum.
Key levels to watch: support near $74.00 and MA-200 at $70.51, resistance at $78.50–$80.50, with a high-probability consolidation range of $74.00–$78.50 for the next five sessions.

Negative reaction outweighs strong Q2 as margin pressure tempers upbeat guidance

Cisco delivered strong Q2 2026 results, posting $15.3 billion in revenue and a 10% year-over-year increase, thanks largely to robust growth in AI infrastructure and campus networking segments. Nevertheless, product margin pressures from high memory costs drove a negative reaction after the report. The company raised its quarterly dividend to $0.42 per share, returned $3 billion to shareholders, and lifted full-year AI infrastructure expectations.

Bullish long-term bias emerges amid weekly support test and heightened volatility

On the weekly chart, CSCO remains under its MA-20 and MA-50, indicating ongoing weakness in the short and medium term, while staying above the MA-200 at $70.51 as a key long-term support. Weekly dynamic resistance sits at the Ichimoku Kijun ($80.50), with support at the MA-200 ($70.51) and a key static level at $74.00. Weekly RSI and MACD both signal a bullish bias, while strong longer-term momentum contrasts with pronounced short-term selling pressure shown by recent oscillators and volatility. The current price is consolidating close to support following a significant weekly range and negative gap at the open.

Upside potential expected next week as technical signals suggest rebound risk

In the upcoming week, CSCO is expected to trade between $74.00 and $78.50, with consolidation likely as price finds support at $74.00 and faces resistance at $78.50 — $80.50. The upside scenario has high probability, as signals from the weekly RSI, ADX, MACD, and MA-50 all point to potential for a rebound or sideways movement, rather than further downside. Should CSCO reclaim $80.50, a recovery toward higher levels would be confirmed, while a break below $74.00 would suggest sellers remain in control.

Previously it was reported that Cisco shares have fallen sharply below short-term moving averages, with medium-term momentum indicators remaining constructive but short-term oscillators signaling strong downside pressure and overbought conditions reversing. The broader trend remains bullish above the long-term average, though recent high volatility and persistent selling reflect a shift in near-term sentiment and resistance for the stock.

Source of Data: CSCO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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