Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, have been adding value for the fifth week in a row, adjusting to a long-term downtrend: the price reversed from the 45.31 mark (Murrey level [2/8]), moved into the positive part of the Murrey trading range and is currently testing the level of 48.44 (Murrey level [6/8]), consolidating above which will allow the quotes to continue growing to 50.00 (Murrey level [8/8]) and 50.78 (Murrey level [ 1/8]). The key for the "bears" is the central mark of the Murrey trading range of 46.88 (Murrey level [4/8]), supported by the central line of Bollinger Bands, the breakdown of which will ensure the resumption of downward dynamics to 45.31 (Murrey level [2/8]) and 44.53 (Murrey level [1/8]), but this scenario seems less likely.

Technical indicators confirm the continued possibility of further growth: Bollinger Bands are reversing up after a decline, MACD is increasing in the positive zone, while Stochastic is directed upwards but approaches the overbought zone, which does not exclude the beginning of a downward correction, but its potential is seen to be limited.

Support and resistance

Resistance levels: 48.44. 50.00, 50.78.

Support levels: 46.88, 45.31, 44.53.

Trading tips

Long positions can be opened from the 48.76 mark with targets of 50.00, 50.78 and stop-loss around 47.90. Implementation period: 5–7 days.

Short positions should be opened below the level of 46.88 with targets of 45.31, 44.53 and stop-loss around 47.55.