Stock of the day: Cisco
10 July 2024
In today's analysis, let's dive into the recent performance of Cisco. The company has had a rough start to July, with its stock price declining almost daily. Yesterday, the price reached a critical horizontal support level marked in orange. This support has held firm throughout 2023, and in June, there was a false breakout marked in blue, initially signaling a buying opportunity. However, sellers have not managed to break this support significantly.
Currently, the stock is testing this crucial support again. If the price breaks below this level and closes significantly lower, it would indicate a strong sell signal. The failure to penetrate this support deeper last month shows the strength of this level, making it a pivotal point for the stock's direction. Traders are closely watching this area to determine the next significant move for Cisco.
Conversely, if the price bounces off this support and manages to break the green downtrend line, it would suggest a buying opportunity. This bounce would signal a reversal in the bearish trend that has dominated July. The next few days will be critical in determining Cisco's direction. Let's monitor whether the support holds or if a new trend emerges, providing a clearer picture of Cisco's potential performance in the near term.