CSCO extends losses as downward momentum and support pressure persist

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Cisco slides 3.37% to $104.93 today

Highlights

CSCO/USD trades below short- and medium-term moving averages, confirming a bearish trend with ongoing downside pressure.
Momentum indicators remain bearish despite oversold signals, and sellers dominated the recent session with a 3.37% decline.
Expected price range for the next 2 to 3 days is $102.92 to $108.67, with immediate resistance at $110.49 and 71% up probability.

Downside risk persists as bearish momentum meets oversold signals

On the technical front, CSCO is trading below both the MA-20 and MA-50, signaling short- and medium-term downside pressure. However, the stock remains above the MA-200 level, while the Ichimoku Kijun on the daily chart at $110.49 is offering immediate resistance. Momentum indicators reflect a mixed outlook: MACD is neutral and ADX indicates the potential for further losses, while the RSI sits at 42.17, pointing to bearish momentum. Both Stochastic RSI and CCI signal oversold conditions, and Bull/Bear Power favors sellers in the current session. The Awesome Oscillator continues to point to ongoing selling pressure, with oscillators noting potential short-term exhaustion amid continued downward momentum.

Rangebound scenario expected as breakout risks emerge

Over the next two to three trading days, the expected price range for CSCO is $102.92 to $108.67, based on typical volatility bands. The probability of an upward move is assessed at 71%, compared to a 29% likelihood for further losses. The baseline scenario suggests prices will oscillate within this forecast corridor. A decisive breakout above the $110.49 resistance could open the way for a move to the upper end of the range, while a drop below $102.92 would likely trigger renewed selling pressure.

Viktoras Karapetjanc, expert at Traders Union, sees Cisco Systems holding firm above key long-term support despite short-term selling momentum. He notes resilience in the macro backdrop, as technical signals suggest oversold conditions and a 71% probability of an upward move in the coming sessions. The expert remains upbeat given the stock's position above the MA-200 and signs of potential short-term exhaustion. "As long as Cisco stays above major support at $102.92, I expect buyers to regain control and aim for $108.67 or higher."

Earlier, analysts noted that Cisco's shares were contending with technical resistance even as the company advanced its AI and network platform offerings. The current setup signals that traders should closely monitor the $110.49 resistance and $102.92 support for potential directional cues as volatility persists.

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.