Cisco is Near a Key Support Area

Published on Friday, 06 July 2012 06:24 Written by TradersHuddle Wire

New York, July 6th (TradersHuddle.com) - Shares of Cisco Systems, Inc. (NASDAQ:CSCO) are trading very close to calculated support at $16.22 with price action closing at just $16.94 and placing the stock near levels where traders will start paying attention.

Cisco's stock range is defined by its calculated support defined at $16.22 and by the resistance level at $17.23, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Cisco's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $17.23 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.