Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, are adjusting at 49.00.

The District Court for the Western District of Texas awarded the company a fine of 65.7 million dollars for violating one of the patents in favor of the claimant, Paltalk Holdings Inc. The trial lasted from 2021.

Despite the 7.0% reduction in the number of Cisco Systems Inc. employees announced yesterday, HSBC bank analysts raised the rating of the company's shares from "Neutral" to "Buy" and the target price from 46.0 dollars to 58.0 dollars, predicting the preservation of annual growth rates (CAGR) at 11.6% during 2024-2027.

Cisco Systems Inc.'s financial report for the second quarter recorded an increase in revenue to 13.6 billion dollars from 12.7 billion dollars over last quarter, and earnings per share (EPS) was 0.87 dollars, higher than the 0.85 dollars forecast by analysts.

Support and resistance

On the D1 chart, the price is trading in a corrective trend, again approaching the support line of the descending channel with boundaries of 47.00–43.00.

Technical indicators, after a short expansion, weaken the global buy signal again: the range of fluctuations of the EMAs of the Alligator indicator began to narrow, and the AO histogram forms corrective bars, being above the transition level.

Support levels: 48.10, 46.00.

Resistance levels: 49.10, 51.00.

Trading tips

If the asset continues to decline and the price consolidates below the support level of 48.10, one can open short positions with a target of 46.00 and a stop-loss of 49.00. Implementation period: 7 days and more.

In case of continued growth of the asset, as well as price consolidation above the resistance level of 49.10, long positions with a target of 51.00 and a stop-loss of 48.40 will be relevant.