Cisco stock outlook: Selloff pressure weighs on short-term momentum

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Cisco slides 3.79% today to $112.7

Highlights

Cisco is reportedly considering the acquisition of SentinelOne, signaling a strategic push into AI-powered cybersecurity and portfolio diversification.
Recent international data center expansions in Italy and Bahrain strengthen Cisco’s global cloud and AI infrastructure capabilities.
Cisco stock faces immediate technical pressure with a sharp intraday decline and high probability of further downside toward $109.95, while mixed momentum signals complicate visibility for a near-term rebound.

Portfolio shake-up in focus as acquisition speculation and global expansion drive sentiment

Cisco has been rumored as a leading candidate to acquire AI-focused cybersecurity firm SentinelOne, a development that could meaningfully alter its portfolio mix and capital allocation strategy, according to Finance Yahoo. This follows the company's recent expansion of data center operations in Italy and Bahrain, which broadens its international infrastructure capabilities and supports future regional cloud and AI ambitions, as reported by the same source. Additionally, Cisco's latest earnings update, cited by Trefis, highlighted ongoing demand for AI infrastructure as a continued theme, though price action has remained under broader selling pressure.

Overbought signals deepen as momentum and resistance limit recovery

On the hourly timeframe, CSCO is trading below its 20- and 50-period moving averages, while holding well above the 200-period moving average. The Ichimoku Kijun level at $118 represents immediate intraday resistance. Technical indicators show contrasting signals: the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) remain neutral, while the Relative Strength Index (RSI) is at 31.61, indicating oversold conditions. Stochastic RSI, Commodity Channel Index (CCI), and Bull/Bear Power all point to strong seller dominance intraday, and the Awesome Oscillator also supports ongoing selling momentum.

Downside favored as volatility guides short-term trading range

Over the next few trading days, CSCO is expected to remain within a price band of $109.95 to $116.83, in line with recent volatility. Downside continuation currently carries a higher likelihood, with a 77% probability assigned to further declines, while the probability of a near-term rebound stands at 23%. In an upside scenario, a confirmed move above the $118 resistance could open the door to a potential reversal. Alternatively, a drop below $109.95 would increase the risk of further losses.

Anton Kharitonov, analyst at Traders Union, sees Cisco's technical picture as weak, with strong intraday selling pressure and oversold readings. He notes that market sentiment is cautious despite AI-related news and ongoing infrastructure expansion, as acquisition rumors and demand trends have failed to stem the decline. The base case remains for further downside while the price stays below $118. "Until Cisco reclaims $118, I remain defensive and see limited upside in the short term."

Earlier, analysts noted that Cisco’s bullish momentum was underpinned by strong technicals and strategic advances in AI and cybersecurity. The latest price action and technical readings now indicate a shift toward near-term downside risk, with traders advised to monitor the $109.95 support as a critical level for further direction.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.