In today’s edition of the Daily Stock Report, we are going to take a look at Cisco Systems Inc (CSCO). The last time we looked at Cisco was at the beginning of the year on January 13, 2025, when we indicated that renewed momentum was beginning to appear in the name after underperforming in recent years. At the time of our last commentary the shares were trading at just under the $59.00 level and resided in the neutral zone of many of the SIA reports CSCO was a constituent of. We also indicated any close above the $60.00 level would be noteworthy and may signal further advances. Today, we see the shares are at $73.11 with the shares entering the favored zone of the SIA S&P 500 report on June 25, 2025, at a price of $68.19 representing a 5.6% increase since then. The shares did briefly slide back to the top of the neutral zone earlier this fall but maintained its positive SMAX score throughout, reemerging in the favored zone last week.
From a technical perspective when analyzing the candlestick chart of CSCO, we see a positive pattern form where the shares broke above its February high at $64.00 in June to a new high in August at $72.00. The shares paused from that point and pulled back to the $66.00 area only to re-assert and break above the $72.00 high in August to establish a new all-time high. Based on a measured move from the recent peak of $72.00 to the trough at $66.00, next resistance may be found at the $78.00 area while support will be found at $69.00.
As we examine the Point and Figure chart on a 2% scale, we can see a steady ascent in the chart beginning in the Autumn of 2024, with a steady pattern of higher highs and higher lows while new highs were established in November 2024, June of this year, and most recently just now when the shares broke above the $72.19 area. Next resistance is at $78.14 and, above that, $81.29. If the shares pull back, support is at its 3-box reversal of $66.69 and, below that, March’s high of $62.84. The shares currently exhibit a bullish Double Top pattern with a positive SMAX score of 7 out of 10; indicating near term strength against the asset classes. Also positive to note, Cisco is listed as a Computer Hardware stock which is also ranked as a favored sector within the SIA Sector report signalling a positive sector back drop for the name.
Cisco Systems, Inc. is the world's largest hardware and software supplier within the networking solutions sector. The secure, agile networks business contains switching, routing, and wireless solutions. The hybrid work division has products for collaboration and contact center needs. The end-to-end security group has products spanning a variety of threat prevention necessities. The internet for the future division has routed optical networks, silicon, and optics. Optimized application experiences offer solutions such as full stack observability. Services are Cisco's technical support and advanced services offerings. In collaboration with Cisco's initiative on growing software and services, its revenue model is focused on increasing subscriptions and recurring sales.
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