Cisco Pulls Back to Multi-Decade Support Cisco Systems has gone nowhere for three years, but now the tech stock may be showing signs of life.
First, notice the pullback from new highs in early February.
Second, notice where CSCO broke out and is trying to stabilize. The current $45.50 level was resistance in December in January. Prices also chopped on either side of it between August 2019 and February 2020.
Looking back a little further, it was a peak in early 2018. Looking back a lot further , this same price zone was support for CSCO all the way back in late 2000 as the dotcom bubble was deflating:
Moving back to present, the 50-day simple moving average (SMA) has now caught up to converge with that key price zone. It also had a “Golden Cross” above the 200-day SMA on January 14.
Finally, stochastics suggest CSCO is nearing an oversold condition.
Given the importance of this level, prices could need some time to consolidate. However, investors may see opportunity in the stock around these levels, especially because its cyclical business could benefit from an economic rebound. Earnings, revenue and guidance beat estimates last quarter, with management citing “encouraging signs of strength.”
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