Cisco shares technical analysis: Oversold RSI suggests potential rebound

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Cisco surges 4.03% today to $97.63

Highlights

Shares of Cisco are trading below key moving averages on both hourly and daily timeframes, indicating sustained seller pressure.
Momentum indicators such as MACD and ADX underscore a bearish trend, with only RSI entering oversold conditions and volatility remaining elevated.
The expected price range over the next few days is $92.45 to $102.81, with a 65% likelihood of a move lower unless consolidation occurs within current levels.

Bearish momentum prevails as price stays below key resistance

On the technical front, CSCO is trading below its MA-20 and MA-50 on the hourly chart and also remains under the MA-200 on the daily chart. The immediate resistance is defined by the Ichimoku Kijun at $99.22. MACD and ADX both signal prevailing bearish momentum, while the RSI is now in the oversold zone. Stochastic RSI and CCI are neutral, and the Awesome Oscillator does not provide a directional cue. Negative Bull/Bear Power values highlight intraday selling dominance, despite the RSI divergence.

Downside risk persists as volatility band contains breakout chances

Over the next few days, CSCO is expected to trade within a volatility band of $92.45 to $102.81. There is a 35% probability of an upward move and a 65% chance of further downside. If price stabilizes inside this corridor, a consolidation phase is likely; a close above resistance could trigger a breakout, while a drop below support would open additional downside risk.

Anton Kharitonov, expert at Traders Union, notes that Cisco shares are trading higher intraday but remain below key moving averages across multiple timeframes. He observes that technical momentum is still bearish, with resistance at $99.22 and indicators signaling prevailing selling pressure. Kharitonov maintains a cautious stance due to the lack of positive news drivers and the dominance of bearish signals. "Until CSCO reclaims its resistance and shifts technical momentum, I see no reason to anticipate a sustainable recovery."

In a recent review, analysts highlighted broad-based technical weakness in Cisco shares, as the stock remained pressured below all major moving averages ahead of a key earnings event. The latest price action and indicator signals reinforce this cautious view, with downside momentum prevailing and the $99.22 resistance now serving as an important level for traders to monitor for any shift in 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.