Cisco Close to Resistance

Published on Monday, 23 January 2012 06:48 Written by Christian Paolinetti

New York, January 23rd (TradersHuddle.com) - Shares of Cisco Systems, Inc. (NASDAQ:CSCO) are trading very close to calculated resistance at $19.95 with the current price action closing at just $19.92 placing the stock near levels that make it difficult to buy.

Cisco Systems, Inc. (NASDAQ:CSCO) supplies data networking products for the Internet. The Company's Internet Protocol-based networking solutions are installed at corporations, public institutions, home networks and telecommunication companies worldwide. The Company's solutions transport data, voice, and video between networks and computers around the world. Cisco was founded in 1984 and its headquartered in San Jose, CA.

Cisco's current stock range is defined by current calculated support defined at $17.62 and by the resistance level at $19.95, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Cisco, as the stock is well above support, however, as the stock pulls back towards $17.62 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $19.95 then traders will get an opportunity to enter Cisco stock by establishing a position as the stock moves to a higher range.