Is Cisco Expecting Resistance?
Published on Friday, 16 November 2012 06:04 Written by TradersHuddle Wire
New York, November 16th (TradersHuddle.com) - Cisco Systems, Inc. (NASDAQ:CSCO) closed the the trading session at $17.94, near its 50 day and 200 day moving averages currently set at $18.37 and $18.39 respectively. Cisco's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $16.68 and resistance at $18.25. Traders should monitor these levels, as they provide insight into the latest price dynamics in Cisco.
If traders want to establish a position on Cisco, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.