Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, are actively adding value for the fourth month in a row: during this time, quotes have moved into the positive part of the main Murrey trading range and are currently testing the reversal level of 59.38 (Murrey level [6/8]), consolidation above which will open up the opportunity to strengthen the upward dynamics to the upper limit of the 62.50 range (Murrey level [8/8]) and further into the reversal zone to the area of 65.62 (Murrey level [ 2/8]). The key for the "bears" is the central mark of the Murrey trading range at 56.25 (Murrey level [4/8]) below the central line of Bollinger Bands, the breakdown of which can provide a change in the current trend and a decline to the targets of 53.12 (Murrey level [2/8]) and 50.00 (Murrey level [0/8]), however, this scenario seems less likely in the near future.

Technical indicators confirm the continuation of the uptrend: Bollinger Bands are directed upwards, MACD is stable in the positive zone, and Stochastic has entered the overbought zone, but is directed upwards.

Support and resistance

Resistance levels: 59.38, 62.50, 65.62.

Support levels: 56.25, 53.12, 50.00.

Trading tips

Long positions can be opened above 59.38 with targets of 62.50, 65.62 and a stop-loss around 57.30. Implementation period: 5–7 days.

Short positions should be opened below the level of 56.25 with targets of 53.12, 50.00 and a stop-loss around 58.50.