After failing to move above its key resistance, at 50.28, which is the highest point of September 2019, the Cisco System Inc stock (NASDAQ: CSCO) sold off heavily. Yesterday, the price made a new low for the year and also closed below the December lowest point, at 43.41. All this negative activity is creating concerns over the stock’s ability to move back up, at least in the near term. For now, we will continue aiming slightly lower.
A further slide may bring the price closer to the 41.02 zone, which is the lowest point of 2019. Initially, the area might provide a bit of support for CSCO, from where it could bounce back up a bit. However, if the price struggles to move back above the previously-mentioned 43.41 barrier, then we may see another slide, which could push the stock below the 41.02 territory and target the 40.27 level. That level marks the lowest point of December 2018.
Our oscillators, the RSI and the MACD, are showing signs that declines in the near-term are possible. The RSI is pointing lower and sits below 50. The MACD is running below zero and its trigger line, and also points lower.
On the other hand, if CSCO moves up again and climbs back above the 45.84 barrier, which is marked by the lows of January 31st and February 20th, this may spark a bit more buying interest among investors. The share price my then drift to the 47.67 obstacle, a break of which might lead to the previously-mentioned 50.28 level, marked by the highest point of September 2019 and the current highest point of February.
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