CSCO: Consolidating Below $72.5 Before Earnings
$Cisco(CSCO)$
$71.07 (+0.04%): Post-high pullback; hold 20-EMA to keep uptrend intact—watch $72.5 for a re-attack on $74–75
Market Recap
Cisco Systems closed $71.07, about 5.0% below its 52-week high ($74.84), trading $70.54–71.58 on ~16.9M shares (vs ~19.2M avg).
Drivers today:
(1) pre-earnings positioning into Nov 12 with investors gauging backlog conversion and AI/secure networking demand;
(2) rotation within megacap tech after recent highs;
(3) defensives bid supporting large-cap infrastructure names while Treasury yields eased.
Indicators & 1-week outlook
Technicals: price sits above the 50-EMA $69.79 and just below the 20-EMA $71.15, reflecting a gentle pullback after a breakout.
MACD (12,26,9) shows MACD 0.865 < signal 0.974 with a small negative histogram (−0.11) — momentum cooling, not broken.
RSI(14) ~51.6 is neutral; a rebound in volume on closes > $72.5 would confirm a trend resumption toward $74–75; failure back < $69.8 risks a deeper drift to $68–67.
Key levels: Support $69.8 / $65-67; Resistance $72.5 /$75.
Valuation: P/E ~27.9x vs S&P 500 ~25x; below many software peers and near CSCO’s recent multiple range, with beta 0.87 and dividend ~2.3%.
Target (1–2 wks): Base case $72.5 → $74 on an EMA20 reclaim; stretch $75 on strong guide. Bear case $68–69 if $69.8 breaks ahead of earnings.
Risk & Disclaimer:
Earnings-week gap risk, order timing/backlog visibility, macro IT budgets, and competitive pricing can skew outcomes. Technical commentary only—not investment advice. Data cross-checked with your Yahoo Finance & TradingView screenshots (today’s close).
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